Ketek,IncHas $400,000 in Assets and One Liability in the Form

question 30

Multiple Choice

Ketek,Inc.has $400,000 in assets and one liability in the form of a $150,000 note payable with a 12% annual interest rate.Assuming Ketek's tax rate is 30% and the firm generates a 15% return on its assets,Ketek's rate of return on owners' equity is:

• A)7.20%
• B)11.76%
• C)15.00%
• D)16.80%

---

Definitions:

Political Campaigns

Organized efforts to influence decision making within a specific group, often related to elections or policy initiatives.

Elderly

Refers to individuals who are significantly beyond the average age of retirement, often considered to be 65 years and older.

Age Stratification

The division of a society into groups based on age, affecting individuals' roles, rights, opportunities, and social perceptions.

Nuclear Families

A family unit consisting of two parents (a mother and a father) and their children, living together as a single household.