Which of the Following Statements Is True About Return on Equity

Multiple Choice

Which of the following statements is true about return on equity (ROE) ?

A) It measures the return on common stockholders' investment in the assets of the firm.
B) The value of the firm's ROE is affected by net income.
C) The value of the firm's ROE is affected by the amount of financial leverage or debt that the firm uses.
D) All of these choices are correct.