Computer Geeks Has Sales of $521,000,a Profit Margin of 14

question 106

Multiple Choice

Computer Geeks has sales of $521,000,a profit margin of 14.8 percent,a total asset turnover rate of 2.16,and an equity multiplier of 1.30.What is the return on equity?

• A)8.91 percent
• B)12.67 percent
• C)18.28 percent
• D)32.11 percent
• E)41.56 percent

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

Stock Dividend

A dividend payment made in the form of additional shares of the company's stock, rather than cash.

Market Value

The current value of an asset or company based on the price at which it can be sold in the marketplace.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a claim on profits.