Return on equity measures:
A)Solvency.
B)Profitability.
C)Leverage.
D)Both solvency and leverage.

Name: Return on equity measures: A)Solvency. B)Profitability. C)Leverage. D)Both solvency and leverage.
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Question

Quizplus · Accepted Answer

Return on equity is a profitability ratio that measures how much profit a company generates for every dollar of shareholder equity. It does not directly assess solvency or leverage, but rather focuses on the profitability aspect of the company's financial performance.

Return on Equity Measures