-Return on Common Equity for 2005 Is:
A)11

question 21

Multiple Choice

$$\begin{array} { l r r } \text { Operating assets } & \underline { 2005 } & \underline { 2004 } \\\text { Short-term debt } & 10,500 & \$ 10,000 \\\text { Long-term debt } & 3,5000 & 1,000 \\\text { Minority interest } & 500 & 4,000 \\\text { Common equity } & 5,500 & 5,000 \\& & \\\text { Operating income } & 1,350 & \\\text { Interest expense } & 350 & \\\text { Tax expense } ( 40 \% ) & 400 & \\\text { Minority interest } & 50 & \\\text { Net income } & 550 &\end{array}$$
-Return on common equity for 2005 is:

• A)11.42%.
• B)10.0%.
• C)11.0%.
• D)10.47%.

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Natural Gas

A fossil fuel composed mainly of methane, used as an energy source for heating, electricity, and vehicle fuel.

Profit

The financial gain achieved when the revenue from selling goods or services exceeds the costs associated with production and operations.

Market Rate

The prevailing price or interest rate for goods, services, or securities in a competitive marketplace.

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The average number of children that would be born to a woman over her lifetime, given current age-specific fertility rates.