The Return on Equity Ratio Usually Is Computed As

question 24

Multiple Choice

The return on equity ratio usually is computed as:

• A)Net income divided by average total assets.
• B)Net income divided by average total stockholders' equity.
• C)Gross profit divided by average total stockholders' equity.
• D)Net income less preferred dividends,divided by average common stockholders' equity.

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Definitions:

Positivity

The practice or tendency to maintain a positive attitude, focusing on the good aspects of any situation.

Absolutely

Used to express complete and total agreement or to confirm that something is unquestionably true or correct.

Smart

Possessing intelligence and quickness of understanding, often used to describe someone who is intellectually able or clever.

Mindfully

Refers to the act of being present and fully engaged with one’s surroundings and activities without being overly reactive or overwhelmed by what’s going on around us.