Digby has a ROE of 0.20 (ROE = Net income/equity). That means: Select : 1 Digby earns $0.20 for each dollar invested by shareholders. Digby earns $0.80 for each dollar invested by shareholders. Digby earns $0.20 per share for common stock held by shareholders. Digby earns $0.80 per share for common stock held by shareholders.

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
Problem 4DQ
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Digby has a ROE of 0.20 (ROE = Net income/equity). That means:

Select : 1

  • Digby earns $0.20 for each dollar invested by shareholders.
  • Digby earns $0.80 for each dollar invested by shareholders.
  • Digby earns $0.20 per share for common stock held by shareholders.
  • Digby earns $0.80 per share for common stock held by shareholders.
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