A Normative Statement Is

question 303

Multiple Choice

A normative statement is

• A) one that does not use marginal concepts.
• B) about what is.
• C) always true.
• D) about what ought to be.

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Definitions:

Book Value Per Share

A financial measure used to assess the per-share value of a company based on its equity available to common shareholders, divided by the number of outstanding shares.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, representing the company's profitability over a specified period.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested, expressed as a percentage.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest in the company.