An equity multiplier is multiplied to return on assets to calculate
A. return on assets
B. return on multiplier
C. return on turnover
D. return on stock
Answer: Option A
Solution(By Examveda Team)
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.This Question Belongs to Commerce >> Financial Management
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Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
The correct option is not available. Right answer is return on equity.
Net profit margin multiply total asset turnover is return on assets.