Assume All Assets Are Operating Assets; All Current Liabilities Are

question 28

Multiple Choice

$$\begin{array} { l r r } & \underline { 2006 } & \underline { 2005 } \\\text { Current assets } & \$ 4,650 & \$ 4,730 \\\text { Long-term assets } & 7,120 & 6,450 \\\text { Current liabilities } & 1,440 & 1,340 \\\text { Long-term debt } & 3,830 & 3,760 \\\text { Common equity } & 6,500 & 6,080 \\& & \\\text { Operating income } & 2,140 & \\\text { Interest expense } & 240 & \\\text { Tax expense } ( 40 \% ) & 760 & \\\text { Net income } & 1,140 &\end{array}$$
Assume all assets are operating assets; all current liabilities are operating liabilities.
-Return on equity for 2006 is:

• A)20.41%.
• B)19.75%.
• C)17.54%.
• D)18.12%.

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Definitions:

Human Resource Management

The strategic approach to the effective management of people in an organization, focusing on maximizing employee performance.

Source of Value

The origin from which something (such as a business, product, or service) derives its worth or usefulness.

Evaluating Performance

The process of assessing the effectiveness and efficiency of employees or processes within an organization, often for the purpose of making informed management decisions.