Which of the Following Is the Correct Formula for Calculating

question 11

Multiple Choice

Which of the following is the correct formula for calculating return on investment?

• A)Net profit ÷ Sales
• B)Gross profit ÷ Sales
• C)Operating profit ÷ Average total assets
• D)Earnings available to stockholders ÷ Number of outstanding stock.

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Definitions:

Marginal Probability

The probability of an event occurring, irrespective of the outcomes of other variables.

P(A or B)

The probability that at least one of two events A or B occurs.

Outcome

The result or consequence of an action, experiment, or situation.

Conditional Probability

The probability of one event occurring with some relationship to one or more other events.