What Would Be the Return on Total Assets of a Firm

question 180

Multiple Choice

What would be the return on total assets of a firm if net income is $50,000, total sales are $100,000, and total assets are $175,000?

• A) 35%
• B) 28.6%
• C) 57.14%
• D) 62.8%

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Definitions:

Indicator Variables

Variables used in statistical models to represent categorical data with two possible values, typically 0 or 1, indicating absence or presence of a characteristic.

Regression Model

A statistical method used to model and analyze the relationships among variables and often used to predict values of a dependent variable based on values of independent variables.

Least-Squares Regression

A statistical method that finds the best-fitting line through a set of points by minimizing the sum of the squares of the vertical distances (residuals) of the points from the line.

Gender

A range of characteristics pertaining to, and differentiating between, masculinity and femininity.