The Financial Ratio Measured as Net Income Divided by Total

question 36

Multiple Choice

The financial ratio measured as net income divided by total equity is known as the firm's:

• A) Profit margin.
• B) Return on assets.
• C) Return on equity.
• D) Asset turnover.
• E) Earnings before interest and taxes (EBIT).

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Definitions:

Service Corporation

A service corporation is a business entity that provides professional services, such as legal, accounting, or consulting, to clients instead of manufacturing or selling goods.

Stock Shares

Units of ownership in a corporation that represent a claim on part of the corporation's assets and earnings.

Ticker P&G

The stock symbol representing Procter & Gamble Co, used for tracking the performance of its shares in the financial markets.

Quarterly Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits, every three months.