The Two Components of ROE Are

question 62

Multiple Choice

The two components of ROE are:

• A) ROA and book value per share.
• B) ROA and leverage.
• C) ROA and profit margin.
• D) leverage and book value.

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Definitions:

Job Evaluation

Job evaluation is a systematic process used to determine the relative worth of jobs within an organization for the purpose of establishing fair compensation levels.

Relative Worth

The perceived value or importance of a job, task, or employee's contributions in comparison to others within an organization, often used in determining compensation.

Wage Compression

Occurs when there is a narrowing of the differences in pay between employees regardless of their skill level or experience, often due to internal or external pressure on wage structures.

Rate Ranges

Pay scale brackets defined by an employer that dictate the minimum and maximum salary for a particular position.