The Return on Equity Can Be Calculated as

question 68

Multiple Choice

The return on equity can be calculated as

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

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Definitions:

Inferiority Complex

A psychological condition where an individual feels a deep sense of inadequacy and lack of self-esteem, often stemming from real or perceived weaknesses.

Alfred Adler

An Austrian psychiatrist and psychotherapist known for founding the school of individual psychology which emphasizes the importance of feelings of inferiority and the creative self.

Compensation

A psychological defense mechanism where an individual overachieves in one area to compensate for failures in another.

Genital Stage

The final stage of Freud's psychosexual development, beginning in puberty, where sexual energies are focused on the genitals and mature sexual relationships are formed.