The Rate of Return on Assets (ROA) Is Calculated by Dividing

question 86

Multiple Choice

The rate of return on assets (ROA) is calculated by dividing

• A) average total assets by net income.
• B) net revenue by average total assets.
• C) net income by average total assets.
• D) net income by net revenue.

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Definitions:

Restructuring

The process of reorganizing a company's structure, operations, or finances with the aim of improving efficiency and profitability.

Unlevered Cost

the cost of a project or investment without considering the financing aspect, such as interest expenses on debt.

Unlevered Cost

The cost of capital or investment that does not consider the effects of debt financing, reflecting the cost of equity alone.

Bonds Outstanding

Refers to all the bonds issued by a company that are still in circulation and have not yet been redeemed.