Consumer Reports Health Routinely Compares Drugs in Terms of Effectiveness

question 8

Multiple Choice

Consumer Reports Health routinely compares drugs in terms of effectiveness and safety. In summer 2008 they reviewed drugs used to treat arthritis. Among the
Information reported was convenience of use (how many pills required each day) and
Possible side effects (e.g., dizziness, stomach upset) . Convenience of use and possible
Side effects constitute the ________ of the study.

• A) Who
• B) What
• C) When
• D) Where
• E) How

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Definitions:

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings per share, a company's net profit divided by the number of its outstanding shares, indicating profitability.

EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes expense and income from interest and taxes.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its capital structure.