A Retailer Can Increase Its Return on Assets by Increasing

question 77

Multiple Choice

A retailer can increase its return on assets by increasing its _____.

• A)financial leverage
• B)asset turnover
• C)debt
• D)cost of goods sold

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Definitions:

Interest Rate

The percentage charged or paid for the use of money on a yearly basis.

Guaranteed

A commitment or assurance, often by a third party, that certain conditions will be fulfilled, including payments or the performance of contractual obligations.

Interest Rate

The rate at which a portion of money is applied as a fee for its loan, commonly expressed per annum.

Present Value

The calculated present value of future monetary sums or cash flow series, with a defined rate of return.