Return on Equity Compares

question 16

Multiple Choice

Return on equity compares

• A)the market price of the company's stock to its dividend policy.
• B)a company's earnings to the dividends paid for the year.
• C)the profits of a company to the investment made by its shareholders.
• D)the profits of a company to the selling price of each share of stock.

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Definitions:

Remeasured

Adjusted or recalculated, often in the context of converting the value of foreign currency transactions or financial statements into a functional currency.

Historical Exchange Rate

The exchange rate at which a foreign currency transaction was completed, used to convert values to a presentation currency for reporting purposes.

Common Stock

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.

Foreign Subsidiary

A company that is owned or controlled by another company (parent company) and is located in a country different from where the parent company is headquartered.