Frederico's Has a Profit Margin of 6%,a Return on Assets

question 20

Multiple Choice

Frederico's has a profit margin of 6%,a return on assets of 8%,and an equity multiplier of 1.4. What is the return on equity?

• A) 6.7%
• B) 8.4%
• C) 11.2%
• D) 14.6%
• E) 19.6%

Identify the legal protections and obligations associated with being a director or officer, including liability and indemnification rights.

Recognize the requirements for board meetings and the rights of directors regarding corporate information.

Understand the process and requirements for electing directors and the composition of the board.

Comprehend the responsibility of directors and officers in managing corporate assets and overseeing corporate operations.

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Definitions:

Necessities

Goods and services that are essential for survival, such as food, shelter, and healthcare, often characterized by inelastic demand.

Luxuries

Goods or services that are considered non-essential but are desired for their ability to provide comfort, convenience, or pleasure.

Elasticity Of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good.

Inputs

Resources used in the production process, including labor, capital, materials, and energy.