Q302
An equity multiplier is multiplied to return on assets to calculate
A.
return on assets
AnswerB.
return on multiplier
C.
return on turnover
D.
return on stock
Answer: Option A
Solution
Answer: Option A
Solution:
An equity multiplier is multiplied to return on assets to calculate return on assets. Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.