The Pathways Company Has an Asset Turnover of 3

question 112

Multiple Choice

The Pathways Company has an asset turnover of 3.0 times, using assets of $45,000. The company also has a return on investment (ROI) of 20%. If the residual income was $2,250, what was the company's cost of capital?

• A) 6.0%.
• B) 10.0%.
• C) 15.0%.
• D) 20.0%.

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Definitions:

Bailments

A legal relationship in which physical possession of personal property is transferred from one person to another under agreement that the property will be returned or otherwise disposed of according to the owner's directions.

Innkeepers

Individuals or entities that operate lodging facilities, such as hotels or inns, and are responsible for the safety and well-being of their guests.

Liability

A legal responsibility or obligation that may arise from any act or failure to act.

Modern Society

A term referring to societies characterized by the use of technology, industrialization, urbanization, and advanced social, economic, and political structures.