Which of the Following Is Calculated by Dividing Net Income

question 55

Multiple Choice

Which of the following is calculated by dividing net income by average total stockholders' equity?

• A) Current ratio.
• B) Return on equity ratio.
• C) Total assets turnover ratio.
• D) Net profit margin ratio.

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Definitions:

Life Insurance Proceeds

The money paid out by an insurance company to the beneficiaries of a life insurance policy upon the policyholder's death.

Market Downturns

Periods when the market experiences a decline in prices, often due to economic contractions or negative investor sentiment.

Takeover Bids

Attempts by a company or individual to gain control of another company by purchasing a significant share of its stock to obtain a majority stake.

Repurchases

The action of buying back previously sold shares or goods.