A Firm Has Total Assets of $900,000 and Total Liabilities

question 2

Multiple Choice

A firm has total assets of $900,000 and total liabilities of $400,000. There are no preference shareholders. Earnings before interest and taxes are $100,000. Interest is $21,000 and taxes are $34,000. The return on ordinary shareholders' funds is:

• A)8.0%.
• B)12.5%.
• C)9.0%.
• D)3.8%.

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Definitions:

Clone

The process of creating an exact replica of an organism, tissue, cell, or gene, often used in scientific research.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers.

Number Of Consumers

The total count of individuals in the market willing to purchase a particular good or service.

Clone

In biotechnology, it refers to an organism, cell, or piece of genetic material that is genetically identical to the one from which it was derived; in computing, it describes a replica or copy of a product, software, or hardware.