Step Up Ladders Company Provides the Following Financial Information Calculate Return on Investment Based on the Information Given Above

question 35

Multiple Choice

Step Up Ladders Company provides the following financial information: $$\begin{array} { | l | r | } \hline \text { Income from operations } & \$ 250,000 \\\hline \text { Interest expense } & 49,000 \\\hline \text { Gains/(losses) on sale of equipment } & 2800 \\\hline \text { Net income } & 198,200 \\\hline \text { Total assets at Jan. 1 } & 2,700,000 \\\hline \text { Total assets at Dec . 31 } & 3,500,000 \\\hline\end{array}$$ Calculate return on investment based on the information given above.(Round your answer to two decimal places.)

• A) 9.26%
• B) 6.39%
• C) 8.06%
• D) 7.14%

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Definitions:

Spending Legislation

Legislation that dictates how government funds are to be spent, often detailing specific allocations for public sector initiatives and programs.

Negative Externalities

Economic activities that impose a negative effect on an unrelated third party, such as pollution from a factory affecting nearby residents.

Public Choice Economist

An economist who applies economic theories and methodologies to analyze and understand political behavior and decisions, particularly in the context of public policy and government actions.

Rent-Seeking Behavior

Actions by individuals or firms to obtain economic gains through manipulation or exploitation of the political or social environment, rather than through productive economic activity.