Return on Equity Is Equal to Which One of the Following

question 64

Multiple Choice

Return on equity is equal to which one of the following?

• A)dividend yield divided by total equity
• B)retained earnings divided by total equity
• C)revenue divided by total equity
• D)net income divided by total equity
• E)operating cash flow divided by total equity

Recognize the significance of media ownership concentration and its effects on society.

Understand how mass media audiences can be both active and passive.

Understand the historical impact of Napster on the music industry and media conglomerates.

Analyze the conflict between media conglomerates and individual Internet users over copyright issues.

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Definitions:

Expansion Projects

Initiatives undertaken by a firm to increase its capacity or operations, often requiring significant capital investment.

Replacement Projects

Investments undertaken to replace old or obsolete assets with new ones, aiming to maintain or enhance efficiency, productivity, or the competitive position of a business.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not factor into the decision-making process for future investments.

Internal Rate of Return (IRR)

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.