Which ratio is best used for measuring how well management did in managing the funds provided by shareholders? a. profit margin b. debt to equity c. return on equity d. inventory turnover Answer: c. Shareholders are interested in the return a business generates on the money the shareholder has invested. Therefore, answer c – return on equity is correct. Shareholders tend to focus on the long term.
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We have four options: a. Profit Margin b. Debt to Equity c. Return on Equity d. Inventory Turnover We know that shareholders are interested in the return a business generates on the money they have invested. Show more…
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