If Shareholders Want to Know How Much Profit a fiRm

question 53

Multiple Choice

If shareholders want to know how much profit a firm is making on their entire investment in the firm, the shareholders should look at the:

• A) Profit margin.
• B) Return on assets.
• C) Return on equity.
• D) Equity multiplier.
• E) Earnings per share.

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Definitions:

Muscle Mass

The total amount of skeletal muscle in the body, which can be increased through exercise and affects metabolism and physical strength.

Voluntary Muscle

Muscle tissue that is controlled consciously, such as skeletal muscles that move parts of the body.

Smooth

A texture or quality that is even and uninterrupted by marked changes or disturbances, often used to describe surfaces, movements, or flavors.

Cardiac

Relating to the heart and its function in health or disease.