The rate of return on assets ratio is computed by dividing net income and interest expense, net of tax, by average total assets. Why is the numerator net income and interest expense, net of tax, rather than just net income?
Chapter 13, Questions #20
The rate of return on assets ratio is computed by dividing net income and interest expense, net of tax, by average total assets. Why is the numerator net income and interest expense, net of tax, rather than just net income?
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Related Book For 
Using Financial Accounting Information The Alternative to Debits and Credits
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
ISBN: 978-1133161646