Which of the following ratios is not part of the standard return on equity (ROE)model?
A)net profit margin
B)asset turnover
C)equity multiplier
D)retention rate

Question

Quizplus · Accepted Answer

The standard ROE model includes three ratios - net profit margin, asset turnover, and equity multiplier - which are multiplied together to get the ROE. The retention rate is not part of the standard ROE model.

Which of the Following Ratios Is Not Part of the Standard