You Are Thinking of Investing in Ski Sports, Inc

question 70

Multiple Choice

You are thinking of investing in Ski Sports, Inc. You have only the following information on the firm at year-end 2013: net income = $50,000, total debt = $1 million, and debt ratio = 70 percent. What is Ski's ROE for 2013?

• A)2.94 percent
• B)3.49 percent
• C)7.14 percent
• D)11.67 percent

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Definitions:

Extrinsic Motivation

The desire to perform a behavior to receive promised rewards or avoid threatened punishment.

Creativity

The ability to produce original and valuable ideas, involving imagination and the generation of new solutions to problems.

Venturesome Personality

A personality type characterized by a willingness to take risks and try new experiences.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, often aimed at tapping into one's creativity and innovation.