Return on Common Stockholders' Equity Is Most Closely Related to

question 15

Multiple Choice

Return on common stockholders' equity is most closely related to

• A) gross profit rate and operating expenses to sales ratio.
• B) profit margin and free cash flow.
• C) times interest earned and debt to stockholders' equity ratio.
• D) return on asset and leverage (debt to assets ratio).

---

Definitions:

Software

Programs and operating information used by a computer.

Machine Language

A low-level programming language comprising binary code that is directly executed by a computer's CPU.

Computer Byte

A unit of digital information in computing that commonly consists of eight bits.

Bits

The basic unit of information in computing and digital communications, representing a binary state of 0 or 1.