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PJ's Ice Cream Parlour Has Asked You to Help Piece

question 80

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PJ's Ice Cream Parlour has asked you to help piece together financial information on the firm for the most current year. Managers give you the following information: sales = $50 million, total debt = $20 million, debt ratio = 50 percent, and ROE = 12 percent. Using this information, what is PJ's ROA?


Definitions:

Ease of Formation

The simplicity and straightforwardness associated with establishing a new enterprise or legal entity, typically influenced by the regulatory and legal environment.

Single Tax

A system in which only one type of tax is levied, often proposed to simplify tax systems.

Small Business Administration (SBA)

A U.S. government agency that provides support to entrepreneurs and small businesses, including loans and grants.

Loan Guarantees

Agreements in which a guarantor, usually a government or financial institution, agrees to pay back a loan if the borrower defaults.

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