Question

The ratio shows how much income was earned for every dollar invested by owners. Th ratio...

The ratio shows how much income was earned for every dollar invested by owners. Th ratio is ?
A. Roa
b. Roe
C. Gross margin
D none of the above
0 0
Add a comment Improve this question Transcribed image text
Answer #1

b.ROE (Return On Equity) is correct answer.

ROE = NET INCOME/EQUITY

owners of a company are equity shareholders,so amount which the owners invested is equity of company.So ROE shows how much income was earned per equity(i.e.,amount which was invested by owners).

Add a comment
Know the answer?
Add Answer to:
The ratio shows how much income was earned for every dollar invested by owners. Th ratio...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT