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What ratio is used to measure the profit earned on each dollar invested in a firm’s stockholders?

a.Current Ratio
b.Asset Turnover Ratio
c.Return on Sales Ratio
d.Return on Equity

Respuesta :

mchaid015

Answer:

Correct answer is letter D, Return on equity ratio

Explanation:

Return on equity ratio is used to measure on how well the firm uses the invested dollars to the firm to generate earnings. It is sometimes called as return on net worth. By computing equity ratio, the investors will know how much is the earnings on their per dollar investments for the certain period. This will help the investor to monitor and assess their investment earnings for the period.