Catherine's Consulting Has a Net Income of $ 1,400 and a Total

question 19

Multiple Choice

Catherine's Consulting has a net income of $ 1,400 and a total equity of $ 12,000.The debt-equity ratio is 1.0 and the plowback is 30%.What is the return on assets?

• A)4.24%
• B)4.64%
• C)5.23%
• D)5.83%
• E)None of the above

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Definitions:

Economic Environment

The totality of economic factors, such as employment, income level, and inflation, that influence the operation of a company or market.

Competitive Environment

The dynamic external system in which businesses compete for resources, customers, and market share.

Legal/Regulatory Environment

The framework of laws, regulations, and standards that govern how businesses operate, affecting everything from corporate behavior to market competition.

Philanthropic Side

The aspect of an individual or organization that is dedicated to promoting welfare of others, often through charitable donations or actions.