The Following Ratio Relates the Results of Operating Performance to the Investments

question 34

Multiple Choice

The following ratio relates the results of operating performance to the investments (assets) of a firm without regard to how the firm financed those investments. $\frac{\text { Net Income + Interest Expense Net of Income Tax Savings}}{\text {Average Total Assets }}$

The ratio is called a rate of return on:

• A)assets.
• B)long-term investments.
• C)shareholders' equity.
• D)net income.
• E)net income and interest expense net of income tax savings.

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Definitions:

Proximal End

The part of a limb or structure that is closest to the center of the body.

Radius

The radius is one of the two large bones of the forearm, located on the thumb side when the palm is facing up.

Ulna

The longer of the two bones in the forearm, running parallel to the radius and forming the elbow joint at its larger end.

Coronoid Process

A protruding structure on the upper jaw bone or on the ulna at the elbow, serving as an attachment point for muscles.