Return on Total Assets Is the Product of

question 25

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 the options

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Definitions:

Coattail Provision

A clause in a shareholder agreement protecting minority shareholders by enabling them to join in the sale of a company if a majority shareholder sells their stake.

Voting Rights

The rights of shareholders to vote on corporate matters, such as the election of board members or significant corporate actions, proportional to their share ownership.

Dividend Growth Model

A method used to value a stock by modeling the expected dividends and their growth rate.

Dividend Growth Model

A method used to estimate the value of a stock by considering expected dividends and their growth rate.