Return on Assets Equals

question 15

Multiple Choice

Return on assets equals

• A) operating income/total assets
• B) operating income/sales
• C) operating income/total assets.
• D) sales/total assets,

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Definitions:

Price-Earnings Ratio

A valuation metric that shows the relationship between a company's stock price and its earnings per share.

Dividends

Payments made to shareholders out of a company's profits, often on a regular basis.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, usually with fixed dividends.

Earnings Per Share

A company's profit divided by its number of common outstanding shares, indicating the company's profitability.