The Saw Mill Has a Return on Assets of 6

question 48

Multiple Choice

The Saw Mill has a return on assets of 6.1 percent,a total asset turnover rate of 1.8,and a debt-equity ratio of 1.6.What is the return on equity?

• A)4.26 percent
• B)9.76 percent
• C)12.28 percent
• D)15.86 percent
• E)19.03 percent

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Definitions:

Paycheck

A check issued by an employer to pay an employee for services rendered.

Embezzlement

The act of dishonestly withholding or appropriating assets, usually money, entrusted to one's care for personal use.

Daily Cash Flow

A financial report showing the net amount of cash that is received or dispersed by a business within a given day.

Receipts

Documents that acknowledge the receipt of goods or the receipt of a transaction.