One Reason Why Cities Have Difficulty Raising Money Is Because

question 1

Multiple Choice

One reason why cities have difficulty raising money is because

• A) federal taxes have increased dramatically.
• B) rural areas receive the most support from state taxes.
• C) suburbs have drained off much of the citiesʹ tax base.
• D) suburbanites who come into cities rarely spend any money.

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Definitions:

Price/Earnings Ratio

A valuation metric for stocks calculated by dividing the market price per share by the earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Stock Market

A marketplace where shares of public companies are traded between investors.

Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects cash from its customers by comparing net credit sales to average accounts receivable.

Return On Assets

A profitability ratio that measures how efficient a company is at using its assets to generate earnings, calculated as net income divided by total assets.