Match the correct ratio name from the list below labeled a through f with the ratio formulas appearing in items
-Net income / average shareholders' equity
A) Debt/equity ratio
B) Capital structure leverage
C) Return on sales
D) Long term debt ratio
E) Return on equity
F) Common equity leverage

Question

Quizplus · Accepted Answer

The ratio of Net income / average shareholders' equity is known as Return on Equity (ROE), which measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Match the Correct Ratio Name from the List Below Labeled