Exhibit 19-4
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 79

Multiple Choice

Exhibit 19-4
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
You are provided with the following information about MaxCorp. $\begin{array}{lr}\text { Net sales } & 5000 \\\text { Total Assets } & 3000 \\\text { Depreciation } & 260 \\\text { Net Income } & 600 \\\text { Long term Debt } & 2000 \\\text { Equity } & 2160 \\\text { Dividends } & 160\end{array}$
-Refer to Exhibit 19-4. Calculate the return on equity (ROE) .

• A) 20.4%
• B) 17.8%
• C) 22.4%
• D) 27.8%
• E) 30.4%

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Definitions:

Incorporation Date

The date on which a company was legally registered or incorporated and started its existence as a corporate entity.

Record Date

Record date is the specific date set by a company on which one must be on the company's books as a shareholder to receive a declared dividend or participate in corporate actions.

Quarterly Dividends

Dividends that are declared and paid by a company four times a year, usually at a fixed rate per share.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.