A Firm Has a Return on Equity of 20% and a Total

question 96

Multiple Choice

A firm has a return on equity of 20% and a total asset turnover of 4. Assuming a debt ratio of 50% and sales of $1,000,000, calculate net income.

• A) $25,000
• B) $50,000
• C) $75,000
• D) $100,000

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Definitions:

Volunteer Blood Donor

An individual who chooses to donate their blood freely, without compensation, to help others in need.

Whole Blood

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A nonsteroidal anti-inflammatory drug (NSAID) used to relieve pain, swelling, and inflammation, similar to ibuprofen but with a longer duration of action.