Which of the Following Is a Profitability Ratio

question 12

Multiple Choice

Which of the following is a profitability ratio?

• A) return on assets
• B) earnings per share
• C) price to earnings
• D) dividend yield

Understand the tax implications of bond interest and the deductibility of interest expenses.

Distinguish between the market value and par value of bonds.

Grasp the basics of present value computations and their applications in bond valuation and installment notes.

Understand the advantages and disadvantages of lease financing and the role of mortgages in financing.

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Definitions:

Retained Earnings

The amount of net earnings left in the company after dividends are paid out to shareholders, used for investment or to pay off debt.