Which financial metric is highlighted as the most reliable indicator of management quality? Option: "Return on equity (ROE)", "Price-to-earnings (P/E) ratio", "Dividend yield", "Earnings per share (EPS)"

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Which financial metric is highlighted as the most reliable indicator of management quality?

"Return on equity (ROE)"

"Price-to-earnings (P/E) ratio"

"Dividend yield"

"Earnings per share (EPS)"

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Which financial metric does Warren Buffett use to assess a company's profitability and efficiency?

Price-to-Earnings Ratio (P/E)

Return on Equity (ROE)

Market Capitalization

Dividend Yield

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Which financial ratio measures a company's ability to generate profits from its shareholders' investments?

PAT Margin

EBITDA Margin

ROA

ROE

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What does a consistently high return on equity (ROE) suggest about a company?

The company has a low gross profit margin

The company is experiencing declining earnings per share

The company is heavily reliant on debt financing

The company is effectively utilizing shareholder investments to generate profits

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Which financial metric does Warren Buffett favor over EPS when assessing a company's profitability?

"Price-to-Book Ratio"

"Return on Equity"

"Price-to-Earnings Ratio"

"Debt-to-Equity Ratio"

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Which metric is used to evaluate the 'quality' of a stock in smart-beta investing?

Social media engagement

Return on equity (ROE)

Website traffic

Number of employees