Return on equity (ROE) is calculated as:
✓ Correct Answer: Option B
ROE = Net Income / Average Shareholders Equity. Measures how efficiently equity capital generates profit. DuPont analysis decomposes ROE into margin × turnover × leverage.
ROE = Net Income / Average Shareholders Equity. Measures how efficiently equity capital generates profit. DuPont analysis decomposes ROE into margin × turnover × leverage.