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dlinn [17]
3 years ago
7

Digby has a roe of 0.24 (roe = net income/equity). that means:

Business
1 answer:
djyliett [7]3 years ago
5 0

Answer:

each dollar that is invested by the shareholders

Explanation:

The formula to compute the return on equity is shown below:

Return on equity = (Net income) ÷ (total equity)

It shows a relationship between the net income and the total equity so that the correct percentage can be computed.  

It also shows the profitability of the company which reflects each dollar that is invested by the shareholders

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Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorporation. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly. Another reason to keep shares in the company treasury is to retain a controlling interest in the business.

6 0
3 years ago
Wich best describes how consumers may benefit from specialization
AlekseyPX
What are the options?

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Fried donuts has sales of $764,900, total assets of $687,300, total equity of $401,300, net income of $68,200, and dividends pai
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3 years ago
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