Which of the following is the most accurate definition of return on shareholders equity? (a) Profit after

Question:

Which of the following is the most accurate definition of return on shareholders’ equity?

(a) Profit after tax as a percentage of share capital

(b) Profit after tax as a percentage of share capital and reserves

(c) Sales (revenue) as a percentage of share capital

(d) Sales (revenue) as a percentage of share capital and reserves

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Financial Accounting

ISBN: 9781292244471

8th Edition

Authors: Pauline Weetman

See More Books

Question Posted: Mar 06, 2024 07:01 AM

See More Questions

John has purchased goods from a hardware supplier and has been offered trade credit terms of 1.5/10, n/40. Calculate (a) the opportunity cost of trade credit in this case. Assuming that John can...
In parallelogram ABCD shown below, AB is 7 inches long. If the parallelograms perimeter is 46 inches, how many inches long is AD? F. 6 1/2 G. 16 H. 28 J. 39 K. 49 B 7 A C D
Use Kruskals algorithm to find the minimum spanning tree for the weighted graph in Figure 9.29. The numbers represent hundreds of dollars. Figure 9.29 A 5 F 1 3 B 2 G 9 3 E C A D
A stock has a beta of 1.55 and an expected return of 15 percent. A risk-free asset currently earns 2.2 percent. a. What is the expected return on a portfolio that is equally invested in the two...
What is the difference between a bank operating line of credit and a traditional loan?
Which object oriented diagrams are generated during transition phase?
Lynn Goldsmith is a photographer known for her photographs of famous musicians. In 1981, Goldsmith had a photography session with the singer Prince. Three years later, Vanity Fair obtained a license...
The field work for the June 30, 2011, audit of Tracy Brewing Company was finished August 19, 2011, and the completed financial statements, accompanied by the signed audit reports, were mailed...
1.Libby just expanded her restaurant. She projects revenue will reach $35,000 for the new restaurant in the first year and increase by 25% over the next three years. Expenses are 75% of sales. The...
What is the formula for calculating the priceearnings ratio? (a) Profit after tax for ordinary shareholders divided by number of ordinary shares (b) Number of ordinary shares divided by profit after...
The following table sets out business transactions and events for Chris Brown Ltd Required: (a) Using the accounting equation spreadsheet provided, record the effect of each transaction and events of...
The top section of an 8-ft-deep 100-ft 100-ft heated solar pond is maintained at a constant temperature of 80F at a location where the atmospheric pressure is 1 atm. If the ambient air is at 70F and...
A buyer can afford no more than $1,200 per month in payments. The most favorable loan available in the market is a 30-year loan at 5%. What is the maximum affordable house with a 20% down payment?...
Describe four effective communication techniques that could be used when interacting with customers. List and describe five ways to establish effective regular communication with customers. Outline...
what are operational strategies that can be put in place to meet customer demands at peak times
Firm C has a market value of $500 million and the stock is trading at $25 per share. Firm D has a market value of $100 million and the stock is trading at $50 each. Firm C is contemplating acquiring...
If an organisation is using the cash basis of accounting, when is income recognised? Provide an example to illustrate.
Refer to the definition of assets on page 180. Discuss how a leased building might qualify as an asset of the lessee (tenant) under this definition.
Refer to the data for problem 13-36 regarding Long Beach Pharmaceutical Company. Required: Compute each division's residual income for the year under each of the following assumptions about the...
Set out the arguments in favors of marginal costing?
Set out the arguments in favors of marginal costing?
Set out the arguments in favors of marginal costing?
A wholesaler has three commodities to sell and has three types of customers. The discount is as per following rules: (i) (ii) (iii) (iv) For Govt. orders, 15% discount is given irrespective of the...
1. We throw a pair of six-sided dice (sides numbered 1-6) repeatedly and note the sum of the two dice each time. What is the minimum number of throws needed to ensure that we see the same sum three...
what ways does social constructionism critique mainstream psychology and other disciplines for their reliance on essentialist and universalizing theories, and how does it propose alternative...

Which of the following is the most accurate definition of return on shareholders equity? (a) Profit after

Question:

Step by Step Answer:

b Choices c and d can be elimina...View the full answer

Financial Accounting

Students also viewed these Business questions