Net earnings before deducting minority share of earnings is utilized i

QUESTION

Net earnings before deducting minority share of earnings is utilized in the following ratios, since noncontrolling interests are included in the base. Which ratio is an exception to this statement?a. net profit marginb. return on assetsc. return on equityd. return on investmente. none of the answers
The answer is e) because all four of the following ratios all include minority interest in their calculation. Profit margin includes net income without minority interest deductions and Sales includes those generated by assets owned by minority interest holders. Return on assets has it too because

lidated balance sheets include assets owned by minority interests. Return on equity includes minority interest in the equity portion Return on investment also includes minority interest in its equation.

ANSWER:

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