Which One of the Following Ratios Is Not Part of the "Standard

question 35

Multiple Choice

Which one of the following ratios is not part of the "standard" return on equity ROE) model?

• A) net profit margin
• B) asset turnover
• C) equity multiplier
• D) retention rate

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Definitions:

Medium Of Exchange

A tool that assists in the buying, selling, or exchanging of goods among different parties.

Cash

Liquid currency including coins and banknotes that is used to facilitate transactions and settle debts.

Stocks

Shares of ownership in a company, representing a claim on part of the company's assets and earnings.

Fiat Money

Currency that a government has declared to be legal tender, but it is not backed by a physical commodity.