Examlex

Solved

Professor Winona Wright Has Just Read an Article in Fortune

question 87

Multiple Choice

Professor Winona Wright has just read an article in Fortune magazine about issues in the Enron bankruptcy. She wishes to share it with her class that morning and makes 50 copies to distribute to them. Professor Wright:


Definitions:

ROA

Return on Assets, an indicator of how profitable a company is relative to its total assets, showing how efficient management is at using assets to generate earnings.

ROE

Return on Equity: It's a financial performance indicator that is computed by dividing the net income by the equity held by shareholders.

Equity/Debt Ratio

An economic indicator revealing the balance between shareholder equity and borrowed funds in financing company assets.

Level 3 Assets

These are financial assets and liabilities that are hard to value because they do not have a readily observable market price, often requiring significant estimation in their valuation.

Related Questions