Last Year Vaughn Corp

question 62

Multiple Choice

Last year Vaughn Corp.had sales of $315, 000 and a net income of $17, 832, and its year-end assets were $210, 000.The firm's total-debt-to-total-assets ratio was 42.5%.Based on the DuPont equation, what was Vaughn's ROE?

• A) 14.77%
• B) 15.51%
• C) 16.28%
• D) 17.10%
• E) 17.95%

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Definitions:

Off-Balance Sheet Items

Financial obligations or assets not recorded on a company's balance sheet, often involving potential liabilities.

Warranty of Title

A legal guarantee provided by the seller that they have the right to sell the property and that it is free from any claims or liens.

Patent Infringement

The unauthorized use or sale of a patented invention.

Implied Warranty

A legal concept that guarantees a product will meet basic quality and functionality standards, even if not explicitly stated in a contract.