If the Discount Rate Is 15%,then Which Alternative Should the Owner

question 25

Multiple Choice

If the discount rate is 15%,then which alternative should the owner choose:

• A)#1
• B)#2
• C)#3
• D)either #1 or #2
• E)either #1 or #3

---

Definitions:

Return on Common Stockholders' Equity

This metric measures the profitability attributable to equity holders, presenting the percentage of net income generated for each dollar of common stockholders' equity.

Total Asset Turnover

A metric that evaluates how efficiently a company can produce sales from its assets, achieved by contrasting net sales against the average total assets.

Inventory Turnover

A metric indicating the frequency at which a company's inventory is sold and replenished within a specific timeframe.

Dividend Yield

A metric showing the yearly dividend payouts of a company as a proportion of its stock price.