Examveda
Examveda

Return on assets = 6.7% and equity multiplier = 2.5% then return on equity will be

A. 16.75%

B. 2.68%

C. 0.37%

D. 9.20%

Answer: Option A

Solution(By Examveda Team)

Return on equity = Return on assets × Equity multiplier
= 6.7% × 2.5% = 16.75%

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process