Greg Is Interested in Investing in a Small Company, and He

question 63

Multiple Choice

Greg is interested in investing in a small company, and he thinks Allen, Co. might be a good investment. He has been given the following information and would like to know the return on stockholder's equity (ROE) . Assume Allen's marginal tax rate is 40%. $\begin{array}{lr}\text {Earnings before taxes(EBT) : }&\text {\$ 3 million }\\\text { Retum onSales(ROS) :}&\text {3.6 \% }\\\text {Total liabilities: }&\text {\$ 15.0 million }\\\text {Total stockholded's equity: }&\text {\$10.0 million }\\\end{array}$

• A) 12%
• B) 20%
• C) 15%
• D) 18%

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Definitions:

Series Interview

A sequential set of interviews where a candidate meets with multiple interviewers or panels, often used in comprehensive assessment processes.

Different Interviewers

The experience or situation of being evaluated by various individuals across multiple interviews, each with their own style and perspective.

Virtual Interview

An interview conducted over digital platforms using video, voice, or text communication methods, instead of in-person.

Traditional Interview

A conventional method of assessing candidates, typically face-to-face, involving a series of questions to evaluate their suitability for a position.