Use the Table for the Question(s)below

question 50

Multiple Choice

Use the table for the question(s) below.

-Refer to the income statement above.Luther's return on equity (ROE) for the year ending December 31,2015 is closest to:

• A)2.0%
• B)6.5%
• C)8.4%
• D)12.7%
• E)32.5%

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Definitions:

Interest Rate

The price, calculated as a percentage of the amount borrowed, that a lender charges a borrower for the use of their savings for one year.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Explicit Cost

Direct payment made to others in the course of running a business, such as wages, rent, and materials.

Kitchen Equipment

Tools and appliances used in a kitchen for the preparation and cooking of food.