What Is the Return on Equity If Sales Are $100,000,net

question 37

Multiple Choice

What is the return on equity if sales are $100,000,net income is $22,700 and average common Stockholders' Equity is $86,000?

• A)22.7%
• B)26.4%
• C)86.0%
• D)Cannot be determined from information given

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Definitions:

CPI (Consumer Price Index)

An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Real Wages

Wages that have been adjusted for inflation, reflecting the actual purchasing power of the income earned from work.

Base Year

The base year is a specific point in time used as a reference or benchmark for economic or financial calculations, such as index numbers and inflation measurements.

Percentage Changed

A measure that calculates the degree of change over time, indicating growth or decline in specific variables.