Assume MetAmbit Inc

question 61

Multiple Choice

Assume MetAmbit Inc. had net income of $2,500 for the year ending December, 2014. Its beginning and ending total assets were $35,500 and $20,500, respectively. Calculate MetAmbit's return on assets (ROA) . (Round your percentage answer to two decimal places.)

• A) 12.57%
• B) 5.85%
• C) 8.93%
• D) 9.50%

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company’s leverage, specifically the ratio of its total liabilities to its total assets.

Business Risk

The exposure to uncertainty and potential loss in a company’s operations due to factors like fluctuations in revenue or expenses.

Financial Risk

The possibility of losing money on an investment or business venture, often due to changes in the financial markets or failure to meet debt obligations.

Financial Risk

The possibility of losing money on an investment or business venture, often associated with the potential for financial loss due to market volatility, credit risk, and liquidity risk.