A Firm Has Net Income of $114,000,a Return on Assets

question 54

Multiple Choice

A firm has net income of $114,000,a return on assets of 12.6 percent,and a debt-equity ratio of 0.60.What is the return on equity?

• A)17.11 percent
• B)18.98 percent
• C)20.16 percent
• D)22.20 percent
• E)24.60 percent

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Definitions:

Cultural Capital

The social assets of a person (education, intellect, style of speech, dress, etc.) that promote social mobility in a stratified society.

Economic Capital

The assets or resources that an individual or entity has, which can be used to produce economic value.

Norms

Shared expectations or rules within a culture or society that guide and constrain behavior, establishing standards of conduct.

Stratification

The hierarchical arrangement of individuals or groups in a society based on wealth, power, status, or other criteria that leads to unequal access to resources and opportunities.