Carey,IncProvides the Following Information Calculate the Return on Investment

question 133

Multiple Choice

Carey,Inc.provides the following information: $$\begin{array} { | l | r | } \hline \text { Profit margin ratio } & 5 \% \\\hline \text { Asset turnover ratio } & 2 \text { times } \\\hline \text { Net sales } & \$ 450,000 \\\hline \text { Target rate of return } & 9 \% \\\hline\end{array}$$ Calculate the return on investment.

• A)10%
• B)45%
• C)4%
• D)14%

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Definitions:

Risk of Loss

Risk of loss refers to the legal and financial responsibility for the damage, destruction, or loss of property, often determined by the terms of a contract.

Merchant

An individual or company engaged in the wholesale or retail sale of goods, services, or commodities for profit.

Carrier

In telecommunications, an entity that provides services for transmitting data and communications; in transportation, a company responsible for transporting goods or passengers.

FOB

Stands for Free On Board, a term used in international shipping indicating that the seller bears the cost of loading goods onto a shipping vessel, while the buyer pays for transportation and insurance.