问题如下：
Lily is an equity investor who monitors fundamental ratios. Which firm will she choose if all three below have an increase ROE?
选项：
A.Firm A, which repurchases stock and issues more debt.
B.Firm B, whose book value of equity grows slower than net income.
C.Firm C, whose book value of equity decreases faster than net income.
解释：
B is correct.
Firm A has a high debt-to-equity ratio after equity repurchase and debt issue, therefore more risky than before. Firm B's net income and book value of equity both grow and ROE increases, so it is a good sign to buy. ROE=NI/[(BVEt+BVEt-1)/2] Firm C's net income and book value of equity may decrease. Therefore Lily should choose firm B.
fundamental ratio具体指什么？在哪里有讲到呢？
