Return on Equity

question 7

Multiple Choice

Return on equity:

• A)measures the dividends payable to owners on their investment
• B)measures the net earnings payable to owners on their investment
• C)can be compared with bank term deposit rates to provide a guide to success
• D)can be compared with other investment opportunities to provide a guide to success

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Definitions:

Explanatory Variables

are variables in a statistical model that are presumed to influence or cause changes in a dependent variable.

Significant Individually

Refers to the condition when an individual variable or factor is statistically significant on its own within a model or experiment.

Annual Income

The total amount of income received in a year from all sources before taxes and other deductions.

Square Foot

A unit of area measurement equal to the area of a square with sides of one foot in length.