The Marshall Company Has Determined That Its Return on Equity

question 100

Multiple Choice

The Marshall Company has determined that its return on equity is 18.5%. Management is interested in the various components that went into this calculation. You are given the following information: Sales = $12 M, Return on Assets = 7.5% and Return on Sales = 4.5%. What percentage of the company's assets are financed by equity? (Round to the nearest whole percentage)

• A)24%
• B)37%
• C)41%
• D)53%

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Definitions:

Constructive Relationship

A type of relationship characterized by positive, supportive interactions that contribute to the personal growth and well-being of the individuals involved.

Constructively

In a way that is helpful, positive, or beneficial, often contributing to the improvement or development of something.

Selfishly

Acting with primary concern for one's own interest or benefit, often at the expense of others.

Overstating

The action of exaggerating or making something seem more important or significant than it actually is.