A Firm Has Total Assets of $800,000 and Total Liabilities

question 58

Multiple Choice

A firm has total assets of $800,000 and total liabilities of $200,000. If profit after tax and interest is $150,000, the return on shareholders' funds is:

• A)25%.
• B)8%.
• C)12.5%.
• D)9%.

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Definitions:

Legislative Decision-Making

The process by which elected representatives create, modify, or repeal laws within a governmental legislative body.

Drawn Out

Prolonged over time or made to last longer than necessary, often referring to events or processes.

Consumption Decisions

Choices made by individuals or households on purchasing goods and services with their available income.

Current Income

Income received by an individual or entity within a specified period of time, such as wages, salaries, or investment income.