The ROE Ratio Measures

question 86

Multiple Choice

The ROE ratio measures:

• A)return shareholders receive in dividends for each dollar of their investment.
• B)return shareholders receive in dividends and stock price growth for each dollar of their investment.
• C)amount earned by the company on each dollar contributed by shareholders and generated and reinvested by the company.
• D)amount earned by the company on each dollar obtained from equity and debt financing.

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Definitions:

Affect

A psychological term referring to the underlying experience of feeling, emotion, or mood.

Emotion

A complex state of feeling that results in physical and psychological changes and influences thought and behavior.

Social Cognition

The study of how people process, store, and apply information about others and social situations, including how they interpret, analyze, remember, and use information in social interactions.

Motivations

The forces or factors that drive individuals to take action towards achieving goals.