A Firm Has a Debt-Total Asset Ratio of 74 Percent

question 62

Multiple Choice

A firm has a debt-total asset ratio of 74 percent and a return on total assets of 13 percent.What is the return on equity?

• A)26 percent
• B)50 percent
• C)65 percent
• D)84 percent
• E)135 percent

---

Definitions:

Basket of Goods

A fixed set of consumer products and services valued on an annual basis to measure inflation in an economy or specific market.

Government Surveys

Data collection tools used by governments to collect information about populations, economic indicators, public opinions, or conditions within the country.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to monitor inflation.

Consumer Price Index

A benchmark that evaluates the mean change through time in the outlay by urban consumers for a chosen collection of consumer items and services.