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The ﬁNancial Ratio Measured as Net Income Divided by Total

Question 73

Multiple Choice

The ﬁnancial ratio measured as net income divided by total equity is known as the ﬁrm's:

A) Proﬁt margin.
B) Return on assets.
C) Return on equity.
D) Asset turnover.
E) Earnings before interest and taxes (EBIT) .

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