What Is Jane's Rate of Return on Total Assets If

question 67

Multiple Choice

What is Jane's rate of return on total assets if total assets are $135,000, net income is $2,700, interest expense is $1,800, and income tax is $3,000? (Round your answer two decimal places, X.XX%.)

• A) 2.00%
• B) 5.56%
• C) 4.22%
• D) 3.33%

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Definitions:

Efficiency Wages

A theory that higher wages may lead to increased productivity from employees by reducing turnover, increasing morale, or attracting more skilled workers.

Labor Supplied

The total amount of labor that workers are willing and able to offer at a given wage rate in a given time period.

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various methods such as teaching, training, research, or personal development.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.