Use the Following to Answer Questions
Little Deer Industries

question 45

Multiple Choice

Use the following to answer questions
Little Deer Industries gathered the following year-end data (in thousands) for 2010 and 2009:
$$\begin{array} { l l l } \text { Curent Assets } & \frac { 2010 } { 2009 } & \frac { 2025 } { \$ 465 } \\\text { Long-Tenn Arsets } & 885 & 585 \\\text { Curtert Liabilities } & 385 & 385 \\\text { Long-Term Liabilities } & 575 & 575 \\\text { Owners' Equity } & 575 & 265 \\\text { Net Sales } & 975 & 775 \\\text { Gross Margir } & 485 & 365 \\\text { Net Income } & 255 & 100\end{array}$$
-The return on owners' equity for 2010 was:

• A)35.0%
• B)58.8%
• C)60.7%
• D)65.3%

---

Definitions:

American Warrant

An instrument that grants the holder the right to buy shares of a company at a specific price before the warrant expires.

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during its life, according to the terms of the bond.

Put Option

An agreement in finance that allows the purchaser the option, without being compelled, to sell a predetermined quantity of a basic asset at an agreed price before a certain deadline.

Call Option

A legally binding financial document that provides the acquirer the potential, albeit without the obligation, to invest in a range of assets including equities, debts, or raw materials at a price set in advance, and within an agreed period.