A company's return on equity is equal to ________.
A)net profit divided by retention equity
B)net profit divided by value equity
C)net profit divided by customer's equity
D)net profit divided by owner's equity
E)net profit divided by company's liability

Question

Quizplus · Accepted Answer

Return on equity is net profit divided by owner's equity. This ratio measures the profitability of a company from the perspective of the shareholders.

A Company's Return on Equity Is Equal to ________