Logit Co Paid Dividends of $400

question 26

Multiple Choice

Logit Co. paid dividends of $400. And retained 33.33% of their earnings. The sales for the year were $12,000 and total assets of 10,000. What was the rate of return on assets?

• A) 5%.
• B) 6%.
• C) 10%.
• D) 12%.

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Definitions:

Co-insurance Clause

A provision in an insurance policy that requires the policyholder to bear a portion of the risk by paying a percentage of the total claim amount.

Apportions Losses

The process of dividing or allocating financial losses among different parties, usually according to a predetermined formula or agreement.

Insurance Companies

Businesses that provide coverage, in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments.

Coinsurance Clause

A provision in an insurance policy that requires the policyholder to bear a portion of the risk by paying a percentage of the total claim.