A Company Has Return on Assets of 10

question 50

Multiple Choice

A company has return on assets of 10%.Return on sales are 5%.The leverage ratio is 2.0.Following DuPont analysis,what is return on equity?

• A)5%
• B)10%
• C)20%
• D)25%

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for implementing the country's monetary policy and regulating its financial institutions.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage of the principal.

Federal Reserve

The Federal Reserve is the central bank of the United States, responsible for regulating the monetary and financial system.

Money Supply

Money Supply is the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in bank accounts.