Which of the Following Statements Regarding the Return on Equity

question 93

Multiple Choice

Which of the following statements regarding the return on equity (ROE) measure is incorrect?

• A) ROE is used to measure the profitability of the firm in relation to the amount invested by stockholders.
• B) ROE equals net income divided by average total stockholders' equity.
• C) ROE is affected by a company's use of leverage.
• D) A company's ROE is lower than its return on investment because ROE does not consider that part of the business that is financed by debt.

Evaluate determinants of 2x2 and 3x3 matrices.

Apply elementary row operations for matrix simplification and solving systems.

Solve systems of linear equations using matrices.

Use Cramer's Rule to solve systems of linear equations.

---

Definitions:

Reversioner

An individual or entity entitled to reclaim possession of property after a certain condition has been fulfilled or a specific period has elapsed.

Expropriation

The forceful taking of land by a government or government agency for public purposes.

Rapid Transit

A type of high-speed urban public transportation system, often involving subways, elevated trains, or metros.

Dominant Tenement

In property law, this refers to the property that benefits from an easement over another piece of land, known as the servient tenement.