Which of the following shows the relationship between net profit available to ordinary shareholders and average ordinary equity?
A)Inventory turnover
B)The rate of return on ordinary shareholders' equity
C)The rate of return on total assets
D)Profit

Question

Quizplus · Accepted Answer

The rate of return on ordinary shareholders' equity measures the profitability relative to the equity held by ordinary shareholders, showing the relationship between net profit available to them and average ordinary equity.

Which of the Following Shows the Relationship Between Net Profit