Profitability and Asset Management Ratios You Are Thinking of Investing

question 20

Multiple Choice

Profitability and Asset Management Ratios You are thinking of investing in Wave Runnerz,Inc.You have only the following information on the firm at year-end 2013: net income = $10 million,total debt = $65 million,and debt ratio = 35 percent.What is Wave Runnerz's ROE for 2013?

• A)8.28 percent
• B)15.38 percent
• C)28.57 percent
• D)43.96 percent

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Definitions:

Less-Than Complete Performance

The execution of a contractual obligation in which some elements or aspects have been left unfulfilled or partially completed.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields.

Creative Processes

A series of steps or methodologies used by individuals or teams to generate innovative ideas or solve problems creatively.

Trade Secret

Information or processes that give a business an advantage over competitors who do not know the information or processes.