Return on Equity (ROE) Is Calculated By

question 70

Multiple Choice

Return on equity (ROE) is calculated by:

• A) subtracting liabilities from assets.
• B) adding the book value and the market price of a stock.
• C) dividing net income by shareholders' equity.
• D) multiplying assets by a selected number.
• E) deducting taxes from dividends.

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Definitions:

Incorporate

The process of legally declaring a business as a separate entity from its owners, providing legal protections and benefits.

Management By Objectives (MBO)

Is a process of joint objective‐setting between a manager and a staff member.

External Supervisory Control

Oversight conducted by external bodies or regulators to ensure an organization meets standards or regulations.

Relationship Building

The process of establishing and maintaining positive connections with others, often characterized by trust, understanding, and cooperation.