The return on equity can be calculated as
A) Profit margin × 1 / Total asset turnover × Equity multiplier
B) Return on assets × Profit margin
C) Profit margin × Capital intensity ratio × Debt-equity ratio
D) Profit margin × 1 / Equity multiplier × (1 + Debt-equity ratio)
E) Return on assets × (1 + Debt-equity ratio)
Correct Answer:
Verified
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