You Are Thinking of Investing in Tikki's Torches, Inc

question 92

Multiple Choice

You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2018: net income = $500,000, total debt = $12 million, and debt ratio = 40 percent. What is Tikki's ROE for 2018?

• A) 1.67 percent
• B) 2.78 percent
• C) 4.17 percent
• D) 10.42 percent

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Definitions:

Goals

Targets or outcomes that an individual or organization aims to achieve through certain actions.

Reconceptualize

The process of redefining or reassessing an existing concept or idea, often in light of new evidence or perspectives.

Carrying Out

The act of executing or implementing a plan, decision, or instruction.

Action Identification Theory

The theory that explains how people conceive of action—their own or others’—in ways that range from very concrete to very abstract.