Return on Total Assets Is the Product of _____

question 78

Multiple Choice

Return on total assets is the product of _____.

• A) interest rates and pre-tax profits
• B) the debt-equity ratio and P/E ratio
• C) the after-tax profit margin and the asset turnover ratio
• D) sales and fixed assets
• E) None of these is correct

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Definitions:

Semiannual Interest

Interest calculated or paid twice a year on loans, bonds, or savings accounts.

Bonds Dated

The date specified in the bond document when the bond was issued, important for determining interest payments and maturity.

Fair Value

An estimate of the price at which an asset would be bought or sold in a current transaction between willing parties, not under compulsion.

Market Price

The prevailing market rate at which transactions for assets or services are conducted.