Which of the Following Statements Is True About Return on Equity

question 79

Multiple Choice

Which of the following statements is true about return on equity (ROE) ?

• A) It measures the return on common stockholders' investment in the assets of the firm.
• B) The value of the firm's ROE is affected by net income.
• C) The value of the firm's ROE is affected by the amount of financial leverage or debt that the firm uses.
• D) All of these choices are correct.

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Unconsciously

Pertaining to processes that occur without conscious awareness or control.

Extreme Jealousy

An intense emotional state resulting from perceived threats to a relationship or self-esteem, often leading to destructive behaviors.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, known for his theories of the unconscious mind and the mechanism of repression.