Which of these ratios,or levers of performance,are the determinants of ROE?
I.profit margin
II.financial leverage
III.times interest earned
IV.asset turnover
A) I and IV only
B) II and IV only
C) I, II, and IV only
D) I, II, and III only
E) I, III, and IV only
F) I, II, III, and IV

Question

Quizplus · Accepted Answer

ROE (Return on Equity) is determined by the DuPont formula, which includes profit margin, financial leverage, and asset turnover as its components. Times interest earned is not a direct determinant of ROE.

Which of These Ratios,or Levers of Performance,are the Determinants of ROE