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:

Standards of Living

The range of opulence, leisure, physical goods, and necessary provisions available to a specific group based on economic status or location.

Earnings

The amount of profit that a company produces during a specific period, which can also refer to an individual’s total income and benefits acquired through employment.

Capital Income

The income earned from investments in assets like stocks, bonds, and real estate, excluding labor income.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.