If a business has a return on equity ratio of 25%, then this meansMultiple Choicethe business is generating $0.75 profit on each dollar it spent on inventory.total liabilities must be 25% of the value of the business.the owners made 25% profit from each dollar invested in the company.the return on equity ratio does not represent any of these answers.the business owes 25% of its profits to its employees.

A firm has an operating profit of $120 million, pays interest of $20 million, and pays corporate tax at 30%. All cash flows will grow by 3% per year in perpetuity. The firm’s equity beta is 1.0, the market risk premium is 6% and the risk-free rate is 5%. What is the value of equity assuming no reinvestment needs and no depreciation?A.$909 millionB.$875 millionC.$1,250 millionD.$636 million

What are three profitability ratios?Multiple select question.return on salesacid-testbasic earnings per sharecurrent ratioreturn on equity

Return on equity is net income minus taxes divided by ______.Multiple choice question.current liabilitiesnet salescommon stock outstandingtotal owners' equity

A gross profit ratio of 55% indicates that:Multiple Choicefor each $1 of net income, the company generates $0.55 in gross profit.for each $1 of sales, the company generates $0.55 in gross profit.for each $1 of gross profit, the company generates $0.55 in net income.for each $1 of gross profit, the company generates $0.55 in sales.

Becker Ltd has the following balance sheet figuresTotal assets = $500,000Total liabilities = $150,000Share capital and reserves = $350,000What is the equity ratio?Group of answer choices60%70%43%30%