The Following Ratio Relates the Results of Operating Performance to the Investments

Multiple Choice

The following ratio relates the results of operating performance to the investments (assets) of a firm without regard to how the firm financed those investments. $\frac{\text { Net Income + Interest Expense Net of Income Tax Savings}}{\text {Average Total Assets }}$

The ratio is called a rate of return on:

A) assets.
B) long-term investments.
C) shareholders' equity.
D) net income.
E) net income and interest expense net of income tax savings.