The Return on Equity Can Be Calculated as

question 56

Multiple Choice

The return on equity can be calculated as

• A)Profit margin × 1 / Capital intensity ratio × Equity multiplier
• B)Return on assets × b
• C)Profit margin × Total asset turnover × Debt-equity ratio
• D)Profit margin × 1 / Equity multiplier × (1 + Debt-equity ratio)
• E)Return on assets × Debt-equity ratio

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Definitions:

Upward Counterfactual

An imagined alternative in which the outcome is better than what actually happened.

Misinformation Effect

The phenomenon where people's memories of an event can be influenced by incorrect information presented after the event, leading to false recollections.

Priming

The process by which exposure to a stimulus in the environment increases the salience of a schema.

Counterfactual Thinking

The mental process of imagining alternative outcomes to events that have already occurred.