The Return on Equity Ratio Is Calculated As

question 102

Multiple Choice

The return on equity ratio is calculated as:

• A)dividends paid divided by the average book value of shareholders' equity.
• B)net income divided by the average number of outstanding common shares.
• C)dividends divided by the average number of total shares.
• D)net income divided by the average shareholders' equity.

---

Definitions:

Cultural Background

Refers to the social, ethnic, religious, and cultural factors influencing an individual’s identity, perceptions, and behaviors.

Two-Factor Theory

A psychological theory suggesting that employee satisfaction is influenced by motivation factors that enhance job satisfaction, and hygiene factors that can prevent dissatisfaction.

Hygiene Factors

Sources of job satisfaction such as salary, status, and security

Equity Theory

Theory that holds that motivation is based on our perception of fairness in comparison with others.