Art Supplies Has a Net Income of $138,600

question 27

Multiple Choice

Art Supplies has a net income of $138,600.The firm has $1.25 million in assets and $500,000 in liabilities.What is the return on equity?

• A) 13.87 percent
• B) 15.09 percent
• C) 16.44 percent
• D) 18.48 percent
• E) 21.21 percent

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Definitions:

Rethinking

The process of revising or reconsidering previously held beliefs, ideas, or strategies.

Framing

A cognitive bias in which people react to a particular choice in different ways depending on how it is presented.

Concept

A mental category that is used to group objects, events, and characteristics.

Heuristic

A simple, efficient rule, whether hard-coded by evolutionary processes or learned, used to make decisions or solve problems.