Return on equity is a measure of:
A) financial leverage.
B) firm value.
C) company performance.
D) liquidity.

Name: Return on equity is a measure of: A) financial leverage. B) firm value. C) company performance. D) liquidity.
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Question

Quizplus · Accepted Answer

Return on equity (ROE) is a ratio that measures a company's profit as a percentage of its shareholders' equity. It indicates how much profit a company generates with the money shareholders have invested. Therefore, it is a measure of the company's performance.

Return on Equity Is a Measure Of