Mercier United Has Net Income of $128,470

question 31

Multiple Choice

Mercier United has net income of $128,470.There are currently 32.67 days' sales in receivables.Total assets are $1,419,415, total receivables are $122,306, and the debt-equity ratio is .40.What is the return on equity?

• A)11.42 percent
• B)12.67 percent
• C)13.09 percent
• D)13.48 percent
• E)15.03 percent

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Definitions:

Random Samples

Samples chosen in such a way that each member of the population has an equal chance of being included.

Two-tailed Test

A two-tailed test is a statistical test in which the area of interest is in both tails of the probability distribution, allowing for the testing of both directions of an effect.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically tested against an alternative hypothesis in statistical analysis.

Equality

The state or quality of being equal, especially in status, rights, and opportunities.