Which of the following is the return a company is able to earn on funds invested
ID: 2590070 • Letter: W
Question
Which of the following is the return a company is able to earn on funds invested by shareholders? Return on total assets Return on common stockholders’ equity Price-earning ratio Dividends paid The income amount that is used in the calculation of return on investment is usually earnings before interest and taxes. net income as defined by GAAP. operating cash flows. net operating profit after taxes. Which of the following is the return a company is able to earn on funds invested by shareholders? Return on total assets Return on common stockholders’ equity Price-earning ratio Dividends paid The income amount that is used in the calculation of return on investment is usually earnings before interest and taxes. net income as defined by GAAP. operating cash flows. net operating profit after taxes.Explanation / Answer
Which of the following is the return a company is able to earn on funds invested by shareholders?
Answer : Correct answer is Return on common stockholders’ equity
Explanation: Its formula is Net Income / Shareholders' Equity
The income amount that is used in the calculation of return on investment is usually
Answer: Correct answer is net operating profit after taxes
Explanation: Because other than operating profit are incurred by investment done in the business.
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