The ratio shows how much income was earned for every dollar
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
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
A. Roa
b. Roe
C. Gross margin
D none of the above
Solution
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).
