We Calculate Cash Return on Assets as

question 39

Multiple Choice

We calculate cash return on assets as

• A)The change in cash divided by average total assets.
• B)Net cash flows from operating activities divided by average total assets.
• C)The change in cash divided by ending total assets.
• D)Net cash flows from operating activities divided by ending total assets.

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Definitions:

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock.

Market Price

The present cost at which a service or asset is available for purchase or sale.

Par Value Common Stock

The nominal or face value assigned to common shares in the charter of a corporation, which has little relation to the market value.

Paid-in Capital

The amount of money shareholders have invested in a company in exchange for equity, excluding any earnings retained by the company.