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Which of the Following Is the Formula for Calculating Owner's

question 75

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Which of the following is the formula for calculating owner's return on equity (ROE) ?


Definitions:

Profitability

The ability of a business to generate income in excess of its expenses, resulting in profit.

Net Margin

A financial metric that represents the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Sales

The activity or process of selling products or services, which involves transactions between buyers and sellers.

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