Return on Equity Can Be Expressed as Return on Net

question 59

True/False

Return on equity can be expressed as return on net operating assets multiplied by leverage (net operating assets/equity) and by earnings leverage.

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Definitions:

American Industry

Refers to the manufacturing and economic sectors that drive the United States’ economy, encompassing a wide range of goods and services.

Air Pollution

The presence of harmful substances in the air that can cause health issues for living organisms and damage the environment.

Business Firm

An organization engaged in commercial, industrial, or professional activities, aiming to generate profits by offering goods or services.

Taxes

Mandatory monetary levies enforced by a government on people or organizations to support public spending.