Which Ratio Measures the Operating Return on the Firm's Assets

question 103

Multiple Choice

Which ratio measures the operating return on the firm's assets irrespective of financial leverage and taxes?

• A) basic earning power ratio
• B) profit margin
• C) return on assets
• D) operating leverage return

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Definitions:

P-Value

The likelihood of getting findings from tests that are at least as extreme as what was observed, assuming the correctness of the null hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect, serving as the default assumption that is tested against an alternative hypothesis.

Type I Error

The incorrect rejection of a true null hypothesis, often referred to as a "false positive."

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the variables being tested.