Dowling's Return on Equity for 2009 Is

question 25

Multiple Choice

Dowling's return on equity for 2009 is:

• A)22%.
• B)24.3%.
• C)17.4%.
• D)9%.ROE = ROA equity multiple = 10.3% 2.36 = 24.3%

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced inventory over a given period.

Fixed-Asset Turnover

A financial ratio that measures a company's ability to generate sales from its fixed assets.

ROA

Return on Assets; a financial ratio indicating how profitable a company is relative to its total assets.