What Is the Return on Stockholders' Equity for a Firm

question 84

Multiple Choice

What is the return on stockholders' equity for a firm with a net profit margin of 5.2 percent, sales of $620,000, an equity multiplier of 1.8, and total assets of $380,000?

• A) 8.48%
• B) 5.74%
• C) 15.27%
• D) 9.36%

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Definitions:

Iron Ore

A naturally occurring mineral from which iron (Fe) is extracted to make steel and various other products.

Wildlife

Wild animals collectively; the native flora and fauna in a particular region not domesticated or cultivated by humans.

Mining Firm's Output

The total amount of minerals or resources produced by a mining company within a specific time period.

Total Cost

The sum of all costs associated with the production of goods or services, including fixed and variable costs.