On January 1, 2011, a Company Has Assets of $16

question 106

Multiple Choice

On January 1, 2011, a company has assets of $16 billion and stockholders' equity of $8 billion. On January 1, 2009, the same company has assets of $20 billion and stockholders' equity of $9 billion. During 2011, the
Company had total sales revenue of $9 billion and total expenses of $7 billion. If the company doesn't have other sources of revenue, its net profit margin during 2011 is:

• A) 0.01
• B) 0.013
• C) 0.22
• D) 0.022

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Definitions:

Economy's Potential

Refers to the maximum sustainable level of output an economy can produce, taking into account its resources and technology.

Time Preference

An individual's predisposition to prioritize present benefits over future benefits.

Real Interest Rates

The interest rates adjusted for inflation, more accurately representing the cost of borrowing and the yield on savings than the nominal interest rate.

Productive Projects

Initiatives or activities undertaken by firms or individuals that result in increased outputs or efficiency.