The ________ Ratio Measures the Return Earned on the Common

question 37

Multiple Choice

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

• A)net profit margin
• B)price/earnings
• C)return on equity
• D)return on total assets

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Definitions:

Settlement/Discount Rate

The interest rate used in calculating the present value of future cash flows when assessing the value of financial instruments or liabilities.

Actuarial Loss

occurs when the actual experience under a pension plan deviates from expected assumptions, resulting in higher costs than projected.

Pension Expense

The cost recognized by an employer for maintaining a defined benefit pension plan for its employees over a specific period.

Plan Assets

Assets that are held within a pension or retirement plan for the purpose of funding participant benefits.