Which of the following shows the relationship between net profit available to ordinary shareholders and average ordinary equity?
A)The rate of return on ordinary shareholders' equity
B)Inventory turnover
C)Profit
D)The rate of return on total assets

Question

Quizplus · Accepted Answer

The rate of return on ordinary shareholders' equity (ROE) shows the relationship between net profit available to ordinary shareholders and average ordinary equity, as it measures the return shareholders are receiving on their investment in the company's equity.

Which of the Following Shows the Relationship Between Net Profit