Return on Stockholders' Equity Is Equal to Times Times

question 8

Multiple Choice

Return on stockholders' equity is equal to times times .

• A)net profit margin;fixed asset turnover;equity multiplier ratio
• B)gross profit margin;total asset turnover;equity multiplier ratio
• C)net profit margin;total asset turnover;equity multiplier ratio
• D)net profit margin;total asset turnover;debt-to-equity ratio

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Definitions:

Utility Function

A utility function is a mathematical representation of a consumer’s preferences, ranking different bundles of goods according to levels of satisfaction.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning they would derive the same level of satisfaction from any combination.

Bliss Point

The optimal quantity of consumption where any further increase or decrease would lead to a lower level of satisfaction for the consumer.

Indifference Curves

Graphical representations in microeconomics to illustrate different combinations of goods between which a consumer is indifferent.