Assume That the Following Financial Ratios Were Computed from the 2017

question 4

Multiple Choice

Assume that the following financial ratios were computed from the 2017 financial statements of Florida Industries:
$$\begin{array} { | l | l | } \hline \text { Return on sales (profit margin) } & 0 . 3 0 \\\hline \text { Return an assets } & 0 . 1 6 \\\hline \text { Common equity leverage } &0 . 8 7 \\\hline \text { Capital structure leverage } & 2 . 2 2 \\\hline \text { Asset turnover } & 1.69 \\\hline\end{array}$$
What was the return on equity for Florida in 2017?

• A)4%
• B)31%
• C)51%
• D)11%

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Definitions:

Disabled

Individuals having a physical or mental condition that significantly limits their movements, senses, or activities.

Labor Earnings

Income received by workers for their labor or services, typically measured in terms of wages, salaries, or commissions.

Negative Income Tax

A system of social welfare that provides income to individuals or families below a certain income level, effectively supplementing their income.

Medicaid

A government-sponsored insurance program in the United States providing health care coverage to low-income individuals and families.