A Firm Has a Return on Equity of 15

question 103

Multiple Choice

A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total asset turnover is 1.25 and the profit margin is 8%. The total equity is $3,200. What is the amount of the net income?

• A) $480
• B) $500
• C) $540
• D) $600
• E) $620

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Definitions:

Relative Frequency

The ratio of the number of times a particular value or event occurs to the total number of occurrences.

Frequency

The number of times an event or data value occurs.

Quantitative Data

Numerical values that indicate how much or how many.

Graphical Presentation

The representation of data in a visual format, such as charts or graphs, to make the data easier to understand and interpret.