USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 92

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The Rollerball Corporation's industry averages are as follows:
Net Profit Margin = 7.5%; Total Asset Turnover = 2.2; Total Assets/Equity = 2.0
Rollerball Corporation has the following financial statements for year ending 12/31/2008. (000's omitted)

-Refer to Exhibit 9.16. Calculate the return on equity (ROE) for Rollerball Corporation and the Industry. Rollerball Industry Average

• A) 115.0% 67.5%
• B) 65.7% 33.0%
• C) 41.8% 33.0%
• D) 19.1% 15.7%
• E) 8.7% 15.7%

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Definitions:

Accounts Payable

The amount of money a company owes to suppliers or creditors for goods and services received but not yet paid for.

Merchandise Inventory

Goods held for sale by a business, typically in a retail or wholesale setting, valued at either cost or market price.

Building Contractors

Businesses or individuals that oversee the construction of buildings or structures, managing materials, labor, and compliance with regulations.

Monthly Depreciation

The portion of the cost of a tangible fixed asset that is considered consumed or used up in the operations of a business each month.