The Return on Equity for a Company That Has Sales

question 52

True/False

The return on equity for a company that has sales of $50,000, net income of $25,000 and average Stockholders' Equity of $125,000 is 20%.

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Definitions:

Cartilage

Connective tissue in which the cells lie within lacunae embedded in a flexible, proteinaceous matrix.

Inorganic Salts

Ionic compounds composed of cations (excluding H+) and anions (excluding hydroxide and oxide ions), often found as crystalline solids.

Red Bone Marrow

Vascularized, modified connective tissue that is sometimes found in the cavities of spongy bone; site of blood cell formation.

Medullary Cavity

The central cavity of bone shafts where yellow marrow (fat cells) is stored.