Last Year Vaughn Corp

question 103

Multiple Choice

Last year Vaughn Corp.had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000.The firm's total-debt-to-total-assets ratio was 42.5%.Based on the DuPont equation, what was Vaughn's ROE?

• A) 14.77%
• B) 15.51%
• C) 16.28%
• D) 17.10%
• E) 17.95%

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Definitions:

Context

Context refers to the circumstances or conditions that surround a particular event, decision, or phenomenon, affecting its meaning or interpretation.

Utility Maximization

The process by which consumers allocate their income in a way that maximizes their overall satisfaction.

Rules of Thumb

Simple, general principles or guidelines that are used to make decision-making quicker, albeit less precise, often based on practical experience rather than theory.

Decision Making

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.