The ratio that shows how many dollars of net income were earned for every dollar invested by the owner is return on equity.

Name: The ratio that shows how many dollars of net income were earned for every dollar invested by the owner is return on equity.
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Question

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Return on Equity (ROE) measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested, essentially showing the efficiency of equity use in generating profits.

The Ratio That Shows How Many Dollars of Net Income