Return on Assets (ROA) Can Be Distorted by

question 9

Multiple Choice

Return on assets (ROA) can be distorted by

• A) interest costs.
• B) dividends.
• C) asset historical valuation.
• D) all of the other answers are correct.

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Definitions:

Credit Line

The maximum amount that a person can owe on a credit card at one time.

Layaway Plan

A purchasing agreement that allows a buyer to pay for goods in installments and receive the goods upon full payment.

APR

APR, or Annual Percentage Rate, represents the yearly interest rate charged on borrowed money, encompassing both the nominal rate and additional costs associated with the loan.

APR

Annual Percentage Rate, which measures the cost of credit, including interest and any other charges, expressed as a yearly interest rate.