If Textile Cloth stockholders want to know how much net profit the firm is making on a percentage basis on their investment in that firm,the shareholders should refer to the
A)profit margin.
B)return on assets.
C)return on equity.
D)equity multiplier.
E)EV multiple.

Question

Quizplus · Accepted Answer

Return on Equity (ROE) measures the amount of net profit relative to shareholders' equity, indicating how effectively the company is generating profits from the investments made by its shareholders. It's a key indicator for stockholders to assess the profitability of their investment in the firm.

If Textile Cloth Stockholders Want to Know How Much Net