Import, Inc. Import, Inc. Has Earnings Available for Common Shareholders of $700

question 48

Multiple Choice

Import, Inc.
Import, Inc. has earnings available for common shareholders of $700 produced by sales of $10,000. It also has total assets of $20,000 and an assets to equity ratio of 2.5.
-What is Import Inc.'s return on common equity?

• A) 7.0%
• B) 8.75%
• C) 17.5%
• D) none of the above

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Definitions:

Budding

A form of asexual reproduction in which a new organism develops from an outgrowth or bud due to cell division at one particular site.

Bacilli

Rod-shaped bacteria that can be found in various environments, some of which are pathogenic to humans.

Spirilla

A genus of bacteria characterized by a spiral or corkscrew shape, known for their movement and contribution to various diseases.

Cocci

Spherical bacteria that can exist as single cells, in pairs, clusters, or chains, often responsible for various infections.