ROE can be converted to EPS by multiplying ROE by ____.

A) the equity multiplier
B) ROA
C) equity / number of shares
D) 1 / number of shares

ROE

Return on Equity (ROE) is a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

EPS

Earnings Per Share, a company's profit divided by the number of outstanding shares of its common stock.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by stockholder's equity.