The Financial Ratio Measured as Net Income Divided by Total

question 10

Multiple Choice

The financial ratio measured as net income divided by total equity is known as the firm's:

• A)profit margin.
• B)return on equity.
• C)return on assets.
• D)earnings before interest and taxes.
• E)asset turnover.

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Definitions:

Money Supply

The entirety of monetary resources accessible in an economy during a specific period.

Rational

Characterized by clear and logical thinking, often with regard to fulfilling one's personal goals or making decisions based on empirical evidence and reasoning.

Unemotional Self-interest

Refers to actions motivated purely by personal gain without regard to emotions or moral considerations.

Q

Generally denotes quantity in economic and mathematical models, referring to the amount of goods or services.