A Common Measure of Profitability Is the

question 51

Multiple Choice

A common measure of profitability is the

• A)current ratio.
• B)free cash flow.
• C)return on common shareholders' equity ratio.
• D)debt to total assets ratio.

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Definitions:

Loan Repaid

The process of paying back borrowed money to the lender, typically including both the original principal amount and accrued interest.

Simple Annual Rate

The interest rate without compounding, indicating the flat yearly cost of borrowing or the annual rate of interest paid on an investment.

Interest Earned

Interest earned is the amount of money gained as interest from savings accounts, investments, or bonds over a certain period.

Annual Rate

the interest rate for a whole year, rather than just a shorter period.