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What is the formula to calculate the ROI? Choose one answer.Answer instructions(Capital Investment) ÷ (Profitability)(Profitability) ÷ (Capital Investment)(Capital Investment) x (Profitability)

Question

What is the formula to calculate the ROI? Choose one answer.Answer instructions(Capital Investment) ÷ (Profitability)(Profitability) ÷ (Capital Investment)(Capital Investment) x (Profitability)

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Solution

The formula to calculate the Return on Investment (ROI) is (Profitability) ÷ (Capital Investment).

Similar Questions

ROI is a useful metric for comparing the profitability of:a.Different investmentsb.Companies in different industriesc.Companies with different capital structuresd.All of the above

Question 1What are the different ways to calculate return on investment (ROI)? Select all that apply.1 pointAdd the predicted sales growth to the revenue earned during the marketing campaign and then divide by the advertising cost.Use customer lifetime value, which is the average revenue generated per customer over a certain period of time. Subtract the marketing cost from the total sales growth during the period the campaign was run and then divide the result by the marketing cost.Calculate the revenue generated, divided by the amount spent on advertising during the campaign.

Return on investment (ROI) is commonly expressed in each of the following ways, except Blank______.Multiple choice question.ROI = Net income / ((Beginning of year total assets + end of year total assets) / 2)ROI = Operating income / Average operating assetsROI = Net income / Average total assetsROI = Net income / Average stockholders' equity

ROI can be calculated as Blank______.Multiple select question.margin × turnoveraverage operating assets ÷ net operating incomenet operating income ÷ average operating assetsmargin ÷ turnover

Return on investment (ROI) Blank______.Multiple choice question.is calculated by dividing the average net income for two years by the average total assetsis normally calculated using net income as the measure of the returnis sometimes referred to as return on equity (ROE)is calculated by dividing net income earned during the year by the total assets at the end of the year

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