Goggle Limited Has the Following Figures in Its Statement of Profit

question 12

Multiple Choice

Goggle Limited has the following figures in its statement of profit or loss for the year ended 31 October 2019:
$\begin{array}{ll}& £ \\\text { Gross profit } &84,000 \\\text { Administration expenses } &24,000 \\\text {Bank overdraft interest } &600 \\\text { Bank loan interest } &2,400 \\\text { Selling and distribution costs } &21,000 \\\text { Profit before taxation } &36,000 \\\text { Taxation } &9,000\end{array}$

• A) 9 times
• B) 12 times
• C) 13 times
• D) 15 times

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Definitions:

Return On Total Assets

A financial ratio that measures the profitability of a company relative to its total assets.

Return On Stockholders' Equity

A measure of the profitability of a corporation in relation to stockholders' equity, indicating how efficiently a company uses its equity to generate profits.

Return On Common Stockholders' Equity

A financial ratio that measures the profitability of a company from the perspective of common stockholders, calculating how much net income is generated per dollar of common equity.

Common Stock Price

The current price at which a company's shares are being bought and sold on the stock market.