Last Year Vaughn Corp

question 103

Multiple Choice

Last year Vaughn Corp.had 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 DuPont 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:

Average Daily Float

The average amount of uncollected funds represented by checks in the process of clearing, typically used in banking and finance to assess cash management efficiency.

Total Float

The total amount of time that a project task can be delayed without causing a delay to the project's completion date.

Cheque Clear

The process by which a cheque's funds move from the issuer's account to the recipient's account, and the cheque is deemed successfully processed.

Banking System

A network of financial institutions, including banks, that provide financial services to the public and businesses.