A Firm Has Net Income of $114,000,a Return on Assets

question 54

Multiple Choice

A firm has net income of $114,000,a return on assets of 12.6 percent,and a debt-equity ratio of 0.60.What is the return on equity?

• A)17.11 percent
• B)18.98 percent
• C)20.16 percent
• D)22.20 percent
• E)24.60 percent

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Definitions:

Negotiated

A process where two or more parties discuss terms and conditions to reach a mutual agreement.

Specific Payee

An individual or entity designated to receive a particular payment or benefit from a contractual agreement.

Blank Indorsement

An endorsement on a financial instrument, such as a check, that specifies no particular endorsee and can be transferred by mere delivery.

Bearer Paper

A negotiable instrument that is payable to whoever holds or presents it for payment.