Ajax Company Has a Debt-Equity Ratio of 0

question 132

Multiple Choice

Ajax Company has a debt-equity ratio of 0.75. Return on assets is 9.5 %. What is the return on equity?

• A) 12.69%
• B) 13.37%
• C) 14.48%
• D) 15.75%
• E) 16.63%

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Definitions:

Contingent Workers

Individuals employed on a non-permanent basis, such as freelancers, contractors, or temp agency workers, often used by companies to adjust more flexibly to workload fluctuations.

Implicit Contract

An unwritten and unspoken agreement between parties, often based on assumed understanding or expectations.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

Managing Diversity

The act of recognizing, comprehending, embracing, and appreciating diversity among individuals in terms of age, socioeconomic status, ethnicity, gender, physical and mental capabilities, racial background, sexual identity, religious beliefs, and reliance on social support programs.