The Return on Equity Can Be Calculated as

question 56

Multiple Choice

The return on equity can be calculated as

• A)Profit margin × 1 / Capital intensity ratio × Equity multiplier
• B)Return on assets × b
• C)Profit margin × Total asset turnover × Debt-equity ratio
• D)Profit margin × 1 / Equity multiplier × (1 + Debt-equity ratio)
• E)Return on assets × Debt-equity ratio

---

Definitions:

Verstehen

The process of understanding social behavior from the point of view of those engaged in it.

Weber

Refers to Max Weber, a German sociologist and political economist known for his theories on the structure of society, religion, and the development of capitalist economies.

Persistent Problems

Issues or challenges that continue over a long period, often resisting attempts at solution or mitigation.

Sociologists

Scholars and practitioners who study social behavior, institutions, structures, and processes, aiming to understand how human action and consciousness shape and are shaped by surrounding cultural and social structures.