The Following Information Is Available for Aerius Corporation for the Current

question 34

Multiple Choice

The following information is available for Aerius Corporation for the current year:

$\begin{array} { l r } \text { Net income } & \$ 160,000 \\\text { Preferred dividends } & 30,000 \\\text { Interest expense } & 18,000 \\& \\\text { Beginning of year: } & \\\text { Total assets } & 900,000 \\\text { Total liabilities } & 300,000 \\\text { Total common shareholders' equity } & 375,000 \\& \\\text { End of year: } & \\\text { Total assets } & 950,000 \\\text { Total liabilities } & 350,000 \\\text { Total common shareholders' equity } & 400,000\end{array}$
The return on assets for Aerius Corporation is:

• A) 18.7%
• B) 17.3%
• C) 19.8%
• D) 19.2%

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Definitions:

Initial Cost

The initial outlay or expenditure associated with the purchase or acquisition of an asset, not including ongoing operating or maintenance costs.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

MIRR

Modified Internal Rate of Return, a financial metric that addresses some of the limitations of the traditional internal rate of return by taking into account different financing and reinvestment rates.

Mutually Exclusive

Conditions or options that cannot occur or be chosen at the same time, requiring a choice to be made between them.