When the Rate of Return on Total Assets Ratio Is

question 111

True/False

When the rate of return on total assets ratio is greater than the rate of return on common stockholders' equity ratio, the management of the company has effectively used leverage.

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Definitions:

Deviation

The amount by which a single measurement differs from a fixed value such as the mean.

Kurtosis

A statistical measure that describes the shape of a distribution's tails in relation to a normal distribution.

Distribution

The way in which a set of values is spread or dispersed across a range, often visualized as a graph plotting the frequency of different outcomes.

Kurtosis

A statistical measure that describes the shape of a distribution's tails in comparison to a normal distribution.