Which of the Following Is the Formula for Computing the Rate

question 38

Multiple Choice

Which of the following is the formula for computing the rate of return on total assets?

• A)(Net income - preferred dividends)/number of shares of outstanding common stock
• B)Net income/net sales
• C)(Net income + interest expense)/average total assets
• D)(Net income - preferred dividends)/average common stockholders' equity

---

Definitions:

National Governments

The central governing bodies of a nation that are responsible for creating and enforcing laws, policies, and regulations, and managing the country's affairs.

Devalue Currencies

The intentional decrease in the value of a country's currency compared to other currencies, typically conducted by the government or central bank to adjust the country's trade balance.

Foreign Investment

Capital investment made by one country into another, either by buying a company in the target country or by expanding operations of an existing business.

Revenue Tariff

A tax imposed on imported goods primarily for generating government revenue rather than protecting domestic industries.