Final answer:
Net income and Market value of equity are used to calculate a company's return on equity.
Step-by-step explanation:
The correct options to calculate a company's return on equity are:
- I. Net income
- III. Market value of equity
Return on equity (ROE) is a financial ratio that measures how efficiently a company is using its equity. It is calculated by dividing net income by the equity. Net income represents the company's profit and indicates the amount of money left after deducting all expenses. Market value of equity is the current market price per share multiplied by the total number of outstanding shares, which represents the value of the company. The book value of equity, option IV, is the value of the company's equity according to its accounting records.