Which of the Following Is a Normative Statement

question 171

Multiple Choice

Which of the following is a normative statement?

• A) The current exchange rate is 0.7 British pounds per U.S.dollar.
• B) In January,the average temperature in Fargo,North Dakota,is 56 degrees.
• C) Winters in Arkansas are too cold.
• D) On average,people save 15 percent when they switch to GEICO.
• E) University of Virginia graduates earn more than Duke University graduates.

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Definitions:

Return On Assets

A measure of how effectively a company uses its assets to generate profit, calculated as net income divided by average total assets.

Total Assets

The sum of all current and non-current assets owned by a company, indicating the total resources available for use in operations.

Market To Book Ratio

A ratio used to compare a company's market value (market capitalization) to its book value, providing insight into how the market values the company's equity.

Book Value Per Share

The financial measure that indicates the per-share value of a company's equity available to shareholders, calculated by dividing net assets by the total number of outstanding shares.