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:

Imports

Goods or services brought into one country from another for sale, which can affect a nation's economy in various ways.

Exports

Products or services shipped from one country to another for the purpose of sale or exchange.

Arbitragers

Individuals or entities that attempt to profit from differences in prices across markets by simultaneously buying and selling similar or identical assets.

Pakistani Rupees

The official currency of Pakistan, used as a medium of financial transaction within the country.