The Measure That Indicates How Efficiently Assets Are Being Used

question 116

Multiple Choice

The measure that indicates how efficiently assets are being used to support sales is called the

• A) total asset turnover.
• B) current ratio.
• C) book value.
• D) net profit margin.

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Definitions:

Marginal Tax Rate

The rate at which your last dollar of income is taxed, effectively the rate applied to each additional dollar of taxable income.

After-Tax Cost of Debt

The net cost of debt after taking into account the tax deductions available on interest payments.

Yield-to-Maturity

The total return expected on a bond if held until its maturity date, accounting for its current market price, face value, interest rate, and time to maturity.

Marginal Tax Rate

A rephrasing: The portion of tax applied to your income for each additional dollar you earn.