Profitability and Asset Management Ratios You Are Thinking of Investing

question 75

Multiple Choice

Profitability and Asset Management Ratios You are thinking of investing in Ski Sports, Inc. You have only the following information on the firm at year-end 2011: net income = $50,000, total debt = $1 million, and debt ratio = 70%. What is Ski's ROE for 2011?

• A) 2.94%
• B) 3.49%
• C) 7.14%
• D) 11.67%

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Definitions:

Egocentric

Egocentric describes a perspective where an individual is overly focused on their own viewpoints and experiences, disregarding others'.

Socialization Occurs

The process by which individuals learn and adopt the values, norms, and behaviors that are considered appropriate in their society or specific groups.

Moreland And Levine Theory

The Moreland and Levine Theory focuses on the processes through which individuals become integrated into a group, emphasizing the stages of membership and the factors that influence group socialization and cohesion.

Adaptation

A process by which an organism or species becomes better suited to its environment.