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The Financial Ratio Obtained by Dividing Net Income After Taxes

question 161

Multiple Choice

The financial ratio obtained by dividing net income after taxes by owners' equity is called the _____.


Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit which leads to firms earning normal profits in the long run.

Monopolist

A single seller in a market, who has significant control over the price and supply of a product.

Price Per Unit

The cost assigned to a single unit of a good or service.

Marginal Revenue

The profit derived from the sale of an additional item of a product or service.

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