Use the Information for the Question(s)below

question 82

Multiple Choice

Use the information for the question(s) below.
In November 2017,Perrigo Co.(PRGO) had a share price of $39.20.They had 91.33 million shares outstanding,a market-to-book ratio of 3.76.In addition,PRGO had $845.01 million in outstanding debt,$163.82 million in net income,and cash of $257.09 million.
-Perrigo's return on equity (ROE) is closest to:

• A)4.6%.
• B)9.1%.
• C)17.2%.
• D)27%.

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Definitions:

Sales Volume

refers to the number of units sold within a reporting period, used as a measure of business performance and market demand.

Variable Costs

Expenses that change in proportion to the production output or sales of a company, such as raw materials and direct labor costs.

Fixed Costs

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance premiums.

Initial Investment

The sum of money allocated to initiate a project, acquire an asset, or invest in a business operation.