The Return on Equity Ratio Measures The

question 209

Multiple Choice

The return on equity ratio measures the:

• A)return stockholders receive in dividends for each dollar of their investment.
• B)return stockholders receive in dividends and stock price growth for each dollar of their investment.
• C)amount of income earned for each dollar of common stockholders' equity.
• D)amount earned by the company on each dollar obtained from equity and debt financing.

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Definitions:

Common Law

Law that is derived from custom and judicial precedent rather than statutes, often contrasted with statutory law.

F.O.B.

F.O.B. (Free On Board) is a shipping term used in international trade to indicate that the seller is responsible for the goods until they are loaded on a vessel at the specified location, after which the buyer assumes risk.

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Contract Cancellation

The legal termination of a contract's obligations by one or more of its parties.