A Firm Has Total Assets of $800,000 and Total Liabilities

question 20

Multiple Choice

A firm has total assets of $800,000 and total liabilities of $200,000. If profit after tax and interest is $120,000, the return on shareholder's funds is:

• A) 12.5%.
• B) 9%.
• C) 20%.
• D) 8%.

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Definitions:

Chymotrypsin

Chymotrypsin is a digestive enzyme that breaks down proteins in the small intestine.

Peptide

A short chain of amino acids linked by peptide bonds, forming the building blocks of proteins.

Ninhydrin

A chemical reagent used to detect amino acids and proteins by producing a deep blue-violet color.

Histidine

An essential amino acid in humans, involved in the growth and repair of tissues and the production of histamine.