In 2022, Toronto Skaters Earned a Return on Investment (ROI)of

question 14

Multiple Choice

In 2022, Toronto Skaters earned a return on investment (ROI) of 15% and had a cost of debt of 7%.The book value of debt was $25,000 and the book value of shareholders' equity was $30,000.The firm faces a tax rate of 30%.The firm's return on equity (ROE) is:

• A)19.92%
• B)22.08%
• C)23.42%
• D)27.12%

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Definitions:

Unrealistic Worry

Excessive concerns or fears about events or situations that are highly unlikely to occur or are out of proportion to their actual risk.

Agoraphobia

An intense fear of being in a situation from which escape is not possible or in which help would not be available if one experienced overwhelming anxiety or a panic attack.

Fear

An emotional response to a perceived threat that prepares the body to either fight the threat or flee from it.

Unable To Work

A condition where an individual faces physical or mental limitations that prevent them from engaging in any substantial gainful activity.