The Interest Rate Charged Per Period Multiplied by the Number

question 74

Multiple Choice

The interest rate charged per period multiplied by the number of periods per year is called the

• A)effective annual rate.
• B)compound interest rate.
• C)periodic interest rate.
• D)annual percentage rate.
• E)daily interest rate.

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Definitions:

Total Assets Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Equity Multiplier

A measure of a company's financial leverage, calculated by dividing its total assets by total stockholders' equity.

Net Income

The net income of a company once all costs and taxes are subtracted from the total earnings.

Total Assets Turnover

A financial ratio that measures a company's efficiency in using its assets to generate revenue.