Exhibit 10 -Refer to Exhibit 10

question 86

Multiple Choice

Exhibit 10.5
Use the Information Below for the Following Problem(S)
You are provided with the following information about Albermarle Corp.
$\begin{array}{c}\begin{array}{lll}\text{Income Statement Data}\\\text{Sales}\\\text{Operating Income}\\\text{Depreciation}\\\text{Interest Expense}\\\text{Pretax Income}\\\text{Income Taxes}\\\text{Net Income after tax}\\\\\text{Balance Sheet Data}\\\text{Fixed Assets}\\\text{Total Assets}\\\text{Working Capital}\\\text{Total Debt}\\\text{Equity}\\\end{array}\begin{array}{lll}&&\end{array}\begin{array}{r}\\542\\38\\3\\3\\32\\13\\19\\\\\\41\\245\\123\\16\\159\\\end{array}\end{array}$
-Refer to Exhibit 10.5.Calculate the income tax rate.

• A) 40.6%
• B) 25.6%
• C) 16.8%
• D) 28.9%
• E) 44.9%

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Definitions:

Investment Turnover

An indicator of how effectively a corporation utilizes its assets to produce sales or income.

Return On Investment

A profitability measure that calculates the return of an investment relative to its cost.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit.

Residual Income

The income that remains after all personal debts and expenses have been paid, or in business, after all capital costs are deducted from net revenues.