The following policy that is consistent with an increase in a firm's return on total assets is:
A)costs increase more than revenues
B)the firm's net working capital (current assets minus current liabilities) position declines
C)the firm sells off some unused assets and pays the proceeds to existing stockholders in the form of an extra dividend
D)the firm's net working capital (current assets minus current liabilities) position declines, and the firm sells off some unused assets and pays the proceeds to existing stockholders in the form of an extra dividend

Question

Quizplus · Accepted Answer

Reducing net working capital and selling unused assets can improve asset efficiency and return on total assets by reducing idle resources and distributing excess cash to shareholders.

The Following Policy That Is Consistent with an Increase in a Firm's