The Two Components of ROE Are

question 62

Multiple Choice

The two components of ROE are:

• A) ROA and book value per share.
• B) ROA and leverage.
• C) ROA and profit margin.
• D) leverage and book value.

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Definitions:

Long Run

A period in economics during which all inputs and operations can be varied, allowing for the adjustment to changes in market conditions or demand.

Very Long Run

In microeconomics, a period of time long enough that technology can change and firms can introduce new products.

Derived Demand

The demand for a product or service that arises from the demand for another product or service it helps to produce.