Return on Equity for Delta Company Is 7

question 26

Multiple Choice

Return on equity for Delta company is 7%. This means that:

• A) Delta will pay a dividend of $0.07 on each ordinary share.
• B) The market value of Delta's ordinary shares will increase.
• C) Delta earned $0.07 for each dollar of equity.
• D) The book value of Delta's ordinary shares will increase by 7%.

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Definitions:

For-Profit Corporation

A type of organization that is intended to operate with the goal of making a profit for its shareholders.

Owners

Individuals or entities that hold the legal right or title to property, assets, or intellectual property.

Not-For-Profit Corporation

A type of legal entity organized for purposes other than generating profit. Any surplus revenues are used to further its objectives rather than distributed to shareholders.

Surplus Revenue

the amount of income that exceeds the total cost of operations, often discussed in the context of businesses and government budgets.