ROE can be converted to EPS by multiplying ROE by ____.
A)the equity multiplier
B)ROA
C)equity / number of shares
D)1 / number of shares

Question

Quizplus · Accepted Answer

ROE (Return on Equity) can be converted to EPS (Earnings Per Share) by multiplying ROE by the ratio of equity to the number of shares. This is because EPS is derived from the earnings attributable to each share, which is essentially the return on equity distributed over all outstanding shares.

ROE Can Be Converted to EPS by Multiplying ROE by ____