Consider the Following Information for Haley and Morris, Inc How Much Is the Return on Investment for 2018?
A)7

question 48

Multiple Choice

Consider the following information for Haley and Morris, Inc. $\begin{array}{lrr}&\text { December } 31\\&2017&2018\\\text { Total assets } & \$ 40,000,000 & \$ 50,000,000 \\\text { Noninterest-bearing current liabilities } & 800,000 & 1,400,000 \\\text { Net income } & 2,600,000 & 3,400,000 \\\text { Interest expense } & 300,000 & 400,000 \\\text { Tax rate } & 30 \% & 30 \%\end{array}$ How much is the return on investment for 2018?

• A)7.57%
• B)7.24%
• C)6.42%
• D)7.82%

---

Definitions:

Transfer Payments

Payments made by the government to individuals, without the government receiving any goods or services in return.

Nondiscretionary Fiscal Policy

involves government policies, like taxation and certain types of government spending, that are not easily altered and automatically adjust to economic conditions.

Aggregate Demand

The whole of economic demand for goods and services at a given price level, within a certain time range.

Federal Budget

A government's plan for revenue and spending over a specific period.