northwest wholesale foods sells common stock. the company is usinga. debt financing and the return shareholders earn is fixed.b. equity financing and the return shareholders earn depends on how profitable the company is.c. debt financing and the return shareholders earn depends on how profitable the company is.d. equity financing and the return shareholders earn is fixed.

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16-11-2022
Business

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northwest wholesale foods sells common stock. the company is usinga. debt financing and the return shareholders earn is fixed.b. equity financing and the return shareholders earn depends on how profitable the company is.c. debt financing and the return shareholders earn depends on how profitable the company is.d. equity financing and the return shareholders earn is fixed.

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JitSen257 JitSen257 · Answer 1 · 2022-11-24T17:52:16+01:00

The company's profitability determines the return shareholders receive from equity financing.

A company's ROE is calculated by dividing its net income by its shareholders' equity.The return on equity (ROE) is a measure of a company's profitability and profitability efficiency.A company's ability to turn equity financing into profits increases with ROE.

What does it mean for shareholders to get a return on equity?

The amount that is returned to owners as a percentage of the money that they have invested or retained in the business is shown by the return on shareholders' equity ratio.One of the five calculations used to determine profitability is this one.

Learn more about Return on equity here:

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