The Following Data Represent Selected Information from the Comparative Income

question 72

Multiple Choice

The following data represent selected information from the comparative income statement and balance sheet for Dunkin Company for the years ended December 31, 2011 and 2010: The rate of return on total assets for Dunkin Company for 2011, was closest to:

• A)1)87.
• B)0)54.
• C)0)39.
• D)1)82.

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Definitions:

Retention Ratio

This ratio indicates the percentage of a company's earnings not distributed as dividends but reinvested in the business.

Return On Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity.

Fixed Asset Capacity

The maximum output or production level that can be achieved using the existing fixed assets under normal circumstances.

Growth Rate

The measure of an entity's increase in size, value, or quantity over a specific period, often expressed as a percentage.