The M² Measure Was Developed by

question 78

Multiple Choice

The M² measure was developed by

• A) Merton and Miller.
• B) Miller and Miller.
• C) Modigliani and Miller.
• D) Modigliani and Modigliani.
• E) the M&M Mars Company.

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.

Stockholders' Equity

The residual assets of a company that belong to the shareholders, calculated as the total assets minus total liabilities.

Total Asset Turnover Ratio

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales to average total assets.

Net Profit Margin Ratio

A financial metric that shows the percentage of a company's revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.