Assume All Assets Are Operating Assets; All Current Liabilities Are

question 51

Multiple Choice

$$\begin{array} { | l | r | r | } \hline & { 2006 } &{ 1005 } \\\hline \text { Current assets } & \$ 4,650 & \$ 4,730 \\\hline \text { Long-term assets } & 7,120 & 6,450 \\\hline \text { Current liabilities } & 1,440 & 1,340 \\\hline \text { Long-term debt } & 3,830 & 3,760 \\\hline \text { Common equity } & 6,500 & 6,080 \\\\\hline \text { Operating income } & 2,140& \\\hline \text { Interest expense } & 240 & \\\hline \text { Tax expense } ( 40 \% ) & 760& \\\hline \text { Net income } & 1,140 & \\\hline\end{array}$$ Assume all assets are operating assets; all current liabilities are operating liabilities.
-Return on equity for 2005 is:

• A) 20.41%
• B) 19.75%
• C) 17.54%
• D) 18.12%

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Definitions:

Effective Benefits Program

A well-designed package of employee benefits that supports the overall well-being and financial security of the workforce, thereby enhancing job satisfaction and loyalty.

Defined-Contribution

A type of retirement plan where an employer, employee, or both make contributions, but future benefits depend on investment performance.

Defined-Benefit Pension Plans

Retirement plans where the employer guarantees a specific retirement benefit amount based on factors such as salary history and duration of employment.

Childcare

The care and supervision of a child or children, typically from infancy to age thirteen, by a person other than the child's legal guardians.