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_____ Which of the Following Ratios Is of Very Limited

Question 42

Multiple Choice

_____ Which of the following ratios is of very limited usefulness in comparing a parent with a subsidiary when each has a different capital structure?


A) Net Income/Total Assets.
B) Net Income/Stockholders' Equity.
C) Operating Income/Total Assets.
D) Operating Income/Invested Capital (Long-term Debt and Stockholders' Equity) .

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