________ Break(s)down the Return-On-Equity into Three Components

question 43

Multiple Choice

________ break(s) down the return-on-equity into three components.

• A)The DuPont identity
• B)Market value ratios
• C)Profitability ratios
• D)Asset management ratios

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Definitions:

Par Value

A nominal or face value assigned to securities, such as stock, which has no direct relation to their market value.

Paid-in Capital

The amount of money that a company receives from issuing shares of stock, representing the funds contributed by shareholders in exchange for ownership interest.

Treasury Stock

These are the repurchased shares held by the issuing company, removing them from the market but not from existence.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the company's assets.