Assuming net income and shareholders equity are positive, and at least $1 in liabilities, the Return on Investment is: Always higher than the Return on Equity. Always equal to the Return on Equity. Sometimes equal to the Return on Equity. Always lower than the Return on Equity.

Assuming net income and shareholders equity are positive, and at least $1 in liabilities, the Return on Investment is: Always higher than the Return on Equity. Always equal to the Return on Equity. Sometimes equal to the Return on Equity. Always lower than the Return on Equity.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...

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Question

Assuming net income and shareholders equity are positive, and at least $1 in liabilities, the Return on Investment is:

Always higher than the Return on Equity.
Always equal to the Return on Equity.
Sometimes equal to the Return on Equity.
Always lower than the Return on Equity.

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