A Business Reports the Following in Its Financial Statements Its Rate of Return on Shareholders' Equity Is:
A) 11

question 16

Multiple Choice

A business reports the following in its financial statements:
$$\begin{array} { l l } \text { Net profit before tax } & \$ 100 \\\text { Interest expense } & 20 \\\text { Income tax expense } & 30 \\\text { Preference dividends paid } & 10 \\\text { Ordinary dividends paid } & 15 \\\text { Total assets at the beginning of the year } & 750 \\\text { Total assets at the end of the year } & 850 \\\text { Total liabilities at the beginning of the year } & 3 7 5 \\\text { Total liabilities at the end of the year } & 4 2 5 \end{array}$$
Its rate of return on shareholders' equity is:

• A) 11.25%
• B) 15.0%
• C) 7.5%
• D) 22.5%

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Definitions:

Social Learning Theory

A theory that suggests people learn new behaviors and information by watching and imitating others.

Instrumental Learning Theory

A concept in psychology that emphasizes learning through the consequences of our actions, often involving rewards and punishments.

Relational Aggression Theory

A theoretical framework that explains aggressive behavior through the manipulation of social relationships, including actions like exclusion, gossip, or the withdrawal of friendship.

Frustration-Aggression Hypothesis

A theory suggesting that the occurrence of aggressive behavior always presupposes the existence of frustration and, conversely, that frustration leads to some form of aggression.