The ___________measures the return on owners' (both preferred and common stockholders) investment in the firm.
A) net profit margin
B) return on equity
C) return on total assets
D) price/earnings ratio

Question

Quizplus · Accepted Answer

Return on equity is the best choice as it measures the return earned on the investment made by the shareholders in the firm. It shows how effectively the firm is utilizing the equity invested by the shareholders to generate profits.

The ___________Measures the Return on Owners' (Both Preferred and Common