Year Vaughn Corphad Sales of $315,000 and a Net Income

question 35

Multiple Choice

year Vaughn Corphad sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000 The firm's total-debt-to-total-assets ratio was 42.5% Based on the Du Pont equation, what was Vaughn's ROE?

• A) 14.77%
• B) 15.51%
• C) 16.28%
• D) 17.10%
• E) 17.95%

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Definitions:

Effective Annual Rate

The interest rate that is annually compounded, taking into account the effects of compounding.

Perpetuity

A type of annuity that pays an infinite series of cash flows, with no end date.

Opportunity Cost

The financial consequence of skipping the immediate secondary choice while deciding.

Perpetuity

A financial instrument that pays a constant annual amount indefinitely, often used in valuing financial assets.