Mike's Place Has Total Assets of $123,800,a Debt-Equity Ratio of 0.75,and

question 7

Multiple Choice

Mike's Place has total assets of $123,800,a debt-equity ratio of 0.75,and net income of $7,100.What is the return on equity?

• A)3.48 percent
• B)3.73 percent
• C)5.74 percent
• D)10.04 percent
• E)13.61 percent

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired or intended result.

Regression Toward The Mean

The statistical phenomenon that extreme values in a data set are likely to be followed by more central, less extreme values.

Trait Scoring

A method used in psychology to quantify individual characteristics or traits, often through questionnaires or assessments.

Law Of Averages

A principle that suggests events with equal probability of occurring will tend to even out over time, but often misinterpreted as a belief that a particular outcome is due.