Rogers Radiators Has Net Income of $48,200, Sales of $947,100

question 24

Multiple Choice

Rogers Radiators has net income of $48,200, sales of $947,100, a capital intensity ratio of .87, and an equity multiplier of 1.53.What is the return on equity?

• A)6.77 percent
• B)5.93 percent
• C)8.95 percent
• D)12.21 percent
• E)14.09 percent

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Collusion

An agreement among firms, usually in secret, to fix prices or to divide markets among themselves, which restricts competition.

Fix Prices

Fix prices involves setting product or service prices at a certain level, often agreed upon among competitors to avoid undercutting each other, which is illegal in many jurisdictions.

Market Share

The share of a market dominated by a specific company or product, commonly represented as a proportion of the overall sales in that market.