Use the Following Information for Questions:
the Following Data Was

question 61

Multiple Choice

Use the following information for questions:
The following data was taken from the accounting records of Darias Corporation: $\begin{array}{lrr}&2011&2010\\\hline\text { Total assets } & \$ 950,000 & \$ 850,000 \\\text { Total liabilities } & 250,000 & 240,000 \\\text { Preferred shares } & 75,000 & 75,000 \\\text { Common shares } & 300,000 & 300,000 \\\text { Retained earnings } & 325,000 & 235,000\\\text { Additional data: } & \\\text { Net income } & 140,000 \\\text { Preferred dividend } & 15,000 \\\text { Interest expense } & 25,000 \\\text { Sales revenue } & 980,000 \\\text { Tax rate } & 32 \%\end{array}$
-The return on equity for 2011 is closest to:

• A)20.0%
• B)21.5%
• C)26.7%
• D)46.7%

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Definitions:

Akhnaton

An ancient Egyptian pharaoh of the Eighteenth Dynasty who is noted for attempting to institute a monotheistic worship of the sun disk Aten.

Self-Creating

The concept of something or someone coming into existence or being through its own inherent capabilities, often used in philosophical and metaphysical discussions about the nature of being and creation.

Theodicies

Philosophical attempts to justify the goodness of God in the face of the existence of evil and suffering in the world.

Total Commitment

A state of being wholly dedicated to a cause or activity with the entirety of one's resources, energy, and being.