Use the Table for the Question(s)below

question 64

Multiple Choice

Use the table for the question(s) below.

-Refer to the income statement above.Luther's return on assets (ROA) 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:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Investment

Assets or items acquired with the goal of generating income or appreciation in the future.

Annual Effective Rate

The interest rate that is adjusted for compounding over a given period, showing the real return on savings or cost of borrowing.

Nominal Rate

The interest rate or rate of return quoted on a loan or investment, not adjusted for inflation.