Selzer Inc

question 106

Multiple Choice

Selzer Inc.sells all its merchandise on credit.It has a profit margin of 4 percent,days sales outstanding equal to 60 days,receivables of $150,000,total assets of $3 million,and a debt ratio of 0.64.What is the firm's return on equity (ROE) ?

• A) 7.1%
• B) 33.3%
• C) 3.3%
• D) 71.0%
• E) 8.1%

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Definitions:

Intrinsic Motivation

The drive to engage in an activity for its own sake, due to the inherent satisfaction and interest it provides, rather than for some separable consequence.

Own Sake

Own sake refers to doing something for its intrinsic value or interest, not for any external reward or outcome.

Set Point Theory

The theory that the body regulates its weight and energy levels around a biologically predetermined point.

Metabolic Rate

The rate at which the body uses energy to maintain basic life functions.