A Company Has Return on Assets of 8

question 101

Multiple Choice

A company has return on assets of 8%.Return on sales are 4%.The leverage ratio is 3.0.Following DuPont analysis,what is return on equity?

• A)4%
• B)8%
• C)24%
• D)12%

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Definitions:

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, and motives to another person.

Hostility

An emotion or behavior characterized by anger, unfriendliness, or opposition towards others.

Defense Mechanism

Unconscious tactics employed to shield oneself from the distress caused by undesirable thoughts or emotions.