An Improvement in Either Capital Turnover or Return on Sales

question 138

Multiple Choice

An improvement in either capital turnover or return on sales, without changing the other, will also improve the _____.

• A)level of sales
• B)cost of capital
• C)net book value
• D)rate of return on invested capital

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Definitions:

Paid-In Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.

Fair Value

An estimate of the market value of an asset or liability based on current market prices or valuations.

Common Stock

A type of equity security that represents ownership in a corporation, usually with voting rights and potential for dividends.

Common Stock

Equity ownership in a corporation, with voting rights and eligibility to receive dividends.