Earnings Per Share, Return on Sales, and Return on Equity

question 250

Multiple Choice

Earnings per share, return on sales, and return on equity are examples of

• A) leverage ratios.
• B) liquidity ratios.
• C) equity ratios.
• D) profitability ratios.

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Definitions:

Simplify

The process of reducing an expression or equation to its simplest form, making it easier to work with.

Percent

A percent is a part per hundred, used as a way of expressing a number as a fraction of 100.

Perimeter

The total distance around the boundary of a two-dimensional shape.

Rectangle

A quadrilateral with four right angles and opposite sides that are equal and parallel.