A Company Has Return on Assets of 10

question 90

Multiple Choice

A company has return on assets of 10%. Return on sales are 5%. The leverage ratio is 4.0. Following DuPont analysis, what is return on equity?

• A)5%
• B)10%
• C)40%
• D)20%

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Definitions:

System Program

Software designed to provide a platform for other software. Examples include operating systems, device drivers, and utility programs.

Assembly Language

A low-level programming language that translates human-readable code into machine code understood by a computer's CPU.

Assembly Code

A low-level programming language that is closely related to the machine code instruction set of a computer's CPU.

Assembler

A type of computer program that translates assembly language into machine language.