Which One of the Following Is a Correct Formula for Computing

question 12

Multiple Choice

Which one of the following is a correct formula for computing the return on equity? 

• A) Profit margin × ROA
• B) ROA × Equity multiplier
• C) Profit margin × Total asset turnover × Debt-equity ratio
• D) Net income/Total assets
• E) Debt-equity ratio × ROA

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Definitions:

Matrimony

The state of being married, also referred to as the institution of marriage.

Civil Unions

A legally recognized union of a couple, similar to marriage, which provides some but not all the rights and responsibilities of marriage under the law.

Same-sex Couples

Romantic or marital relationships between two individuals of the same gender.

Exchange of Property

The act of giving something of value to someone else in return for another item or service.