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Chapter 1 · Corporate and Legal AffairsPractice
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CONCEPT PRACTICE

Return on equity

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Volume 2 · Chapter 1 · Textbook Exercises · Q6

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Which of the following is an explanation of ROE?

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Source: FE Vol 2.pdf, PDF page 135, textbook p. 131 · Information-technology Promotion Agency, Japan · First Edition: April, 2015. ID: tb-v2-c1-q6. Publisher answer and commentary · private review.

Original question · Q6
Q6 Which of the following is an explanation of ROE? a) It represents the profitability against the equity capital. b) It represents the profitability against the total assets. c) It represents the effectiveness of investments on the basis of the ratio of profit to investment amount. d) It represents the financial safety on the basis of the ratio of current assets to current liabilities.

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