The Return on Assets Ratio Is Calculated by Dividing Income

question 24

True/False

The return on assets ratio is calculated by dividing income from continuing operations by average total assets.

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Definitions:

Homemade Dividends

Idea that individual investors can undo corporate dividend policy by reinvesting dividends or selling shares of stock.

Growth Rate

The rate at which a company, economy, or investment increases in size or value over a given period.

Reverse Splits

A corporate action where a company reduces the number of its outstanding shares to increase the share price, without altering the company's market capitalization.

Outstanding Shares

Represents the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.