Which of the Following Is Calculated by Dividing Net Income

question 144

Multiple Choice

Which of the following is calculated by dividing net income by average total stockholders' equity?

• A)Return on assets ratio.
• B)Return on equity ratio.
• C)Earnings per share.
• D)Net profit margin ratio.

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Definitions:

Likelihood

The probability of a set of observations given a particular statistical model.

Joint Probability

The likelihood of two or more events occurring simultaneously given the intersection of the events.

Intersection

The point or set of points where two or more mathematical sets or geometrical shapes meet or overlap.

Union of Events

A set operation that combines all the outcomes of two or more events, with no duplicate outcomes.