A Ratio of Profit to Capital Used or a Rate

question 4

Multiple Choice

A ratio of profit to capital used or a rate of return from capital is referred to as

• A) The debt-equity ratio.
• B) The profitability ratio.
• C) Return on investment (ROI).
• D) The current ratio.
• E) The leverage ratio.

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Definitions:

Common Stock Cash Dividend

A payment made to shareholders out of a company's earnings, specifically to common stockholders.

Treasury

Pertains to the management of an organization's revenues, expenditures, and investment strategies, often associated with government or corporate finance.

Authorized

Officially permitted or agreed upon, often referring to the maximum number of shares a corporation is legally allowed to issue.

Outstanding

Refers to shares that are currently owned by investors, including those held by public investors, institutional investors, and company insiders.