Please show work and explain answer 7.________ measures the percentage of each sales dollar remaining after all costs and expenses, including interest, taxes, and preferred stock dividends, have been deducted. A) Net profit margin B) Operating profit margin C) Gross profit margin D) Earnings available to common shareholders
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Please show work and explain answer
7.________ measures the percentage of each sales dollar remaining after all costs and expenses, including interest, taxes, and
- A) Net profit margin
- B) Operating profit margin
- C) Gross profit margin
- D) Earnings available to common shareholders
8.________ measures the return earned on the common stockholders' investment in the firm.
- A) Net profit margin
- B) Price/earnings ratio
- C)
Return on equity - D)
Return on total assets
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