A Company Has Return on Assets of -10

question 27

Multiple Choice

A company has return on assets of -10%.Return on sales are -6%.The leverage ratio is 3.0.Following DuPont analysis,what is return on equity?

• A)-6%
• B)-10%
• C)-30%
• D)-48%

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Definitions:

Absorption Spectrum

A spectrum that shows the wavelengths of electromagnetic radiation absorbed by a substance, useful in identifying chemical compounds.

Photosynthesis

Green plants and selected organisms employ sunlight to produce nutrients from carbon dioxide and water, a process known as photosynthesis.

Electron Transport Pathways

Series of chemical reactions in cells that generate energy in the form of ATP by transferring electrons through various molecules.

Photosynthesis

The process by which green plants, algae, and some bacteria convert light energy into chemical energy, producing oxygen and glucose from carbon dioxide and water.