Write the Expression in Lowest Terms

question 10

Multiple Choice

Write the expression in lowest terms. If the expression is already in lowest terms, so indicate. Assume that the denominator does not equal zero.

Calculate effects of subsidies on market prices to achieve a new market equilibrium.

Understand the relationship between supply and demand functions.

Calculate equilibrium quantities given changes in supply and demand.

Analyze the effect of external interventions such as taxes and subsidies on market dynamics.

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Definitions:

Times Interest Earned Ratio

A metric used to measure a company's ability to meet its interest payments, calculated as earnings before interest and taxes divided by interest expense.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or under-valued.

Earnings Per Share

The amount of earnings a company makes, divided by its outstanding common shares, which reveals the firm's level of profitability.

Return on Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how effectively a company uses its assets to generate earnings.