Back to Questions
Want to know:
Return on investment profitability ratios measure income relative to assets, equity, or total capital employed by the company. For operating ROA, returns are measured as operating income, that is, prior to deducting interest on debt capital. For ROA and ROE, returns are measured as net income, that is, after deducting interest paid on debt capital. For return on common equity, returns are measured as net income minus preferred dividends (because preferred dividends are a return to preferred equity).
Get a detailed, AI-powered explanation for this question and thousands more on StudyFetch.
Get the Answer for FreeHow StudyFetch Helps You Master This Topic
AI-Powered Answers
Get instant, detailed explanations powered by AI that understands your course material.
Deep Understanding
Go beyond surface-level answers with step-by-step breakdowns and examples.
Personalized Learning
Spark.E adapts to your learning style and helps you connect ideas.
Practice & Test
Turn any question into flashcards, quizzes, and practice tests to solidify your knowledge.
Explore More Questions
- The upper and lower limits on the coupon rate of a floating-rate bond are referred to as the bond'sA) put.B) "make-whole" provision.C) call.D) income limit.E) collar.
- Pineapple Express has selling and administrative expenses of $2,618, costs of goods sold of $24,318, depreciation of $915, and an interest expense of $520. The firm paid $150 in dividends and added $384 to retained earnings for the year. What is the firm's operating cash flow if the tax rate is 35 percent?What is the operating cash flow?A) $1,823.14B) $2,072.12C) $1,969.00D) $2,516.48E) $2,208.15
- Which of these is not an asset-IRA -401k-Mutual Fund-HELOC