The return on equity ratio usually is computed as:
A) Profit divided by average total assets.
B) Operating profit divided by average total shareholders' equity.
C) Gross profit divided by average total shareholders' equity.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The return on equity (ROE) ratio is typically computed as net income divided by average total shareholders' equity, not any of the options provided.

The Return on Equity Ratio Usually Is Computed As