What Are Kang's Return on Equity (ROE) and Earnings Per

question 36

Multiple Choice

What are Kang's return on equity (ROE) and earnings per share (EPS) closest to? $\begin{array}{ll}\text { ROE } & \underline{E P S}\\\text { A) } 28.5 \% & \$ 13.125 \\\text { B) } 28.5 \% & \$ 14.55 \\\text { C) } 65.6 \% & \$ 13.125 \\\text { D) } 65.6 \% & \$ 14.55\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

Estimate costs using the least-squares regression method.

Calculate total variable cost per unit.

Determine the total fixed manufacturing cost.

Estimate total monthly fixed selling and administrative expenses.

---

Definitions:

Discount Rate

The discount rate used in DCF method to establish the current worth of future financial flows.

Independent Projects

Investment projects that do not affect the cash flows or feasibility of other projects under consideration.

Profitability Index

A financial metric used to evaluate the potential profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Discount Rate

The interest rate used to discount future cash flows to their present value, which is crucial in time value of money calculations and in assessing investment opportunities.