Which one of these is a measure of profitability based on the contributed/invested capital and ea...
Which one of these is a measure of profitability based on the contributed/invested capital and earnings retained by the company.
return on investment, return on assets, earnings per share, none of the above or return on equity?
Homework Answers
The Return on Investment = NET INCOME/ INVESTED CAPITAL ,
Net income if not paid as dividend is the earnings that is retained by the company. Invested capital ,is the amount of capital invested initially.
Return on assets = net income/ total assets
EPS = net income/ number of shares outstanding
Return on equity = net income/ equity.
So, the correct option is option 1.
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