________ Measures the Return Earned on the Common Stockholders' Investment

question 68

Multiple Choice

________ measures the return earned on the common stockholders' investment in the firm.

• A) Net profit margin
• B) Price/earnings ratio
• C) Return on equity
• D) Return on total assets

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Definitions:

Pitch Cone

In gear design, it is the imaginary cone that represents the underlying angular surface of the teeth, where the pitch surface of an infinitely small gear would be.

Conical Surface

A surface that extends outward and away in all directions from a common point, resembling the shape of a cone.

Frustum

A truncated shape that results from cutting a pyramid or cone with a plane parallel to its base, leaving two bases, one smaller than the other.

Pitch Angle

The angle between the helix of a thread or gear on a cylindrical shaft and an imaginary line perpendicular to the shaft's axis.