Profitability and Asset Management Ratios You Are Thinking of Investing

question 60

Multiple Choice

Profitability and Asset Management Ratios You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2011: net income = $500,000, total debt = $12 million, and debt ratio = 40%. What is Tikki's ROE for 2011?

• A) 1.67%
• B) 2.78%
• C) 4.17%
• D) 10.42%

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Definitions:

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere and involved in decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Learning Disabilities

Neurologically based processing problems that can interfere with learning basic skills and/or executive functioning.

Mental Disorders

Disorders marked by changes in cognition, emotional state, or behavior that cause significant stress and/or hinder normal functioning.

Left-Handed People

Individuals who predominantly use their left hand for tasks such as writing and handling tools, constituting about 10% of the population.