Which of the Following Ratios Is Not a Component in the Return

question 146

Multiple Choice

Which of the following ratios is not a component in the return on equity using Due Pont analysis?

• A)asset turnover
• B)profit margin
• C)equity multiplier
• D)current ratio

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Definitions:

Oxidizing Agent

A substance that gains electrons and thereby causes another substance to be oxidized in a chemical reaction.

Chemical Reaction

A chemical reaction is a process that leads to the transformation of one set of chemical substances to another through the breaking and forming of chemical bonds.

Evaporative Cooling

A natural or artificial process where the evaporation of a liquid into a gas absorbs heat, reducing the temperature of the surrounding environment.

Specific Heat

The amount of heat per unit mass required to raise the temperature of a substance by one degree Celsius.