Question

Which of the following profitability ratios will usually have the lowest rate of return (stated as...

Which of the following profitability ratios will usually have the lowest rate of return (stated as a percent)?

a.

Return on assets

b.

Return on common equity

c.

Return on investment

d.

Return on total equity

e.

Gross Profit Margin

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Answer #1

Solution:

"Return on assets" ratios will usually have the lowest rate of return (stated as a percent).

Hence, option "a" is correct.

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