Which Ratio Uses Net Income and Net Sales from the Income

question 17

Multiple Choice

Which ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for? ​

• A)Return on investment
• B)Inventory turnover
• C)Current ratio
• D)Profit margin
• E)Income statement

Understand the process of clearing formatting from text and objects to revert them to their default state.

Comprehend the use of accessibility features to make documents more accessible.

Know how to apply and modify specific visual effects (such as shadows, reflections) to text and objects.

Learn to create and manage tab stops and alignment for improved text organization.

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Definitions:

WACC

Weighted Average Cost of Capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.

Cost of Equity

Cost of equity is the return a company requires to decide if an investment meets capital return requirements and can be seen as the return on equity that shareholders expect for their investment risk.

Flotation Cost

The total costs incurred by a company in issuing new securities, including underwriting, legal, registration, and other expenses.

Cost of Capital

The rate of return a company must pay to its shareholders and debt holders, representing the cost of obtaining funds to finance its operations.