How Much Will Gamma Inc

question 77

Multiple Choice

How much will Gamma Inc.'s equity holders earn given the following information: total asset turnover is 0.85, profit margin is 0.15, and debt-equity ratio is 0.25?

• A)9.15%
• B)9.75%
• C)10.15%
• D)10.60% Given D/E ratio then leverage ratio:
• 1 + D/E = 1 + 0.25 = 1.25
• ROE = PM x TAT x LR = 0.12 x 0.65 x 1.25

Understand foundational concepts in cognitive development and the theories that describe them.

Comprehend the role of genetics, environment, and their interaction in child development.

Understand the universal sequence and variation in infant language development.

Recognize the importance of biological maturation in infants' language and sensory perception.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.

Falling Prices

A situation where the general level of prices for goods and services decreases over time.

LIFO Method

An inventory valuation method that assumes the last items added to inventory are the first ones to be sold (Last In, First Out).

Periodic Inventory System

An inventory valuation method where the ending inventory and cost of goods sold are determined at the end of the accounting period.