Last Year Vaughn Corp

question 103

Multiple Choice

Last year Vaughn Corp.had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000.The firm's total-debt-to-total-assets ratio was 42.5%.Based on the DuPont equation, what was Vaughn's ROE?

• A) 14.77%
• B) 15.51%
• C) 16.28%
• D) 17.10%
• E) 17.95%

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Definitions:

Progress Payments

Payments made through the course of a project or contract based on the completion of specified stages of work.

Purchase Money Security Interest

A legal claim that allows creditors to repossess property if the purchaser fails to make payment.

Personal Property Security Act

Legislation that regulates security interests in personal property, ensuring secured parties' rights are protected.

General Security Agreement

A legal document used by lenders that secures a loan with the borrower's assets as collateral.