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:

Overloading

A programming concept where two or more methods in the same class have the same name but different parameters.

Superclass

The class from which a subclass inherits fields and methods in object-oriented programming.

Inheritance

A fundamental concept in object-oriented programming that allows one class to inherit properties and methods from another class.

"Is-a" Relationship

A concept used in object-oriented programming to describe an inheritance relationship between a subclass and its superclass.