Frederico's Has a Profit Margin of 6%,a Return on Assets

question 20

Multiple Choice

Frederico's has a profit margin of 6%,a return on assets of 8%,and an equity multiplier of 1.4. What is the return on equity?

• A) 6.7%
• B) 8.4%
• C) 11.2%
• D) 14.6%
• E) 19.6%

---

Definitions:

Diffusion of Innovations

Diffusion of innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread within cultures and societies, from inception to widespread adoption.

Maintenance

The work required to keep something, such as a building, machine, or system, in good working order or condition.

Implementation

The process of putting a decision or plan into effect; the execution of a policy, program, or project.

Change Agent Skills

Competencies required to facilitate change, including leadership, influence, negotiation, and implementation strategies.