Marshall McBride Inherited $10,000 from His Great Aunt Marth A Invested

question 16

Multiple Choice

Marshall McBride inherited $10,000 from his Great Aunt Marth A.He invested $5,000 in a new start-up venture,10^th Generation,Inc. ,and the other $5,000 in Major Chemicals,Inc,a well-known chemical company that's been around for years.Yesterday,he gathered the following information from the financial statements of these companies
At this time,Marshall's return on equity is:

• A)16% on the 10^th Generation,Inc.stock;11% on the Major Chemicals,Inc.stock
• B)8.5% on the 10^th Generation,Inc stock;10.5% on the Major Chemicals,Inc.stock
• C)2.24% on the 10^th Generation,Inc stock;2.8% on the Major Chemicals,Inc.stock
• D)4.5% on the 10^th Generation,Inc.stock;5.60% on the Major Chemicals,Inc.stock

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