Which of the Following Is the Most Commonly Used Financial

question 22

Multiple Choice

Which of the following is the most commonly used financial performance measure when evaluating an organization's performance?

• A)Gross profit margin
• B)Debt-to-equity ratio
• C)Days sales outstanding ratio
• D)Inventory turnover ratio
• E)Return on investment

---

Definitions:

Pure Discount Bond

A type of bond that is issued at a discount to its nominal value and pays no interest, but is redeemed at its face value at maturity.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically associated with government bonds.

Risk-Free Asset

An investment that is expected to return its principal and interest without any loss or risk of default, typically represented by government bonds.

Strike Price

The Strike Price is the predetermined price at which the holder of an option can buy (in a call option) or sell (in a put option) the underlying asset.