The Prefix Micro Represents Which Multiplier

question 69

Multiple Choice

The prefix micro represents which multiplier?

• A)0.000001
• B)1,000,000
• C)0.001
• D)1,000
• E)none of the above

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Definitions:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.

Residual Income

The amount of income that an individual has after all personal debts, including the mortgage, have been paid. In a corporate context, it's the profit remaining after deducting the cost of capital.

DuPont Formula

A formula that breaks down Return on Equity into three parts: profitability, operating efficiency, and financial leverage, to analyze a company's financial health.

Profit Margin

A profitability ratio calculated as net income divided by revenue, showing the percentage of profit made from sales.