If a Company Has a Strong Rate of Return on Total

question 106

True/False

If a company has a strong rate of return on total assets, that shows that they can easily pay off their current liabilities with their current assets.

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Definitions:

Stock Split

A corporate action that increases the number of shares in a company, leading to a decrease in the price per share while keeping the market capitalization the same.

Shares Outstanding

The total number of company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership interest of shareholders.

Reverse Stock Split

A reduction in the number of a corporation's shares available for trade, intended to increase the market value of each share, without changing the company's market capitalization.