Last Year Vaughn Corp

question 103

Multiple Choice

Last year Vaughn Corp.had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000.The firm's total-debt-to-total-assets ratio was 42.5%.Based on the DuPont equation, what was Vaughn's ROE?

• A) 14.77%
• B) 15.51%
• C) 16.28%
• D) 17.10%
• E) 17.95%

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Definitions:

Two Normally Distributed Populations

Refers to two groups or populations where the data points follow a normal distribution, with specific means and standard deviations.

Independent Samples

Two or more samples that are collected from populations, or groups, that do not affect one another and have no relationship between them.

Pooled Variance Estimate

A method to estimate variance combined from two or more samples that assumes the samples originate from populations with the same variance.

Common Variance

The variance shared by two or more variables, often assessed to understand the relationship or correlation between them.