Return on equity can be expressed mathematically as "(net profit margin)(total asset turnover)(equity multiplier)."

Question

Quizplus · Accepted Answer

This is the correct mathematical expression for return on equity, where net profit margin represents the company's profitability, total asset turnover measures efficiency in asset utilization, and the equity multiplier evaluates how much debt a company is using to fund its operations.

Return on Equity Can Be Expressed Mathematically as "(Net Profit