Which of the following can be used to compute the return on equity?
I. Profit margin * Return on assets
II. Return on assets * Equity multiplier
III. Net income/Total equity
IV. Return on assets*Total asset turnover
A)I and III only
B)II and III only
C)II and IV only
D)I, II, and III only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Return on equity can be computed using the formula: Return on assets * Equity multiplier (II) and Net income/Total equity (III).

Which of the Following Can Be Used to Compute the Return