Shown Below Are Selected Data from the Financial Statements of Noble

question 44

Multiple Choice

Shown below are selected data from the financial statements of Noble Computers. (Dollar amounts are in millions, except for the per share data.)
$$\begin{array} { | c | r | } \hline \text { Income statement data: } & \\\hline \text { Sales } & \$ 3,500 \\\hline \text { Cost of goods sold } & 1,890 \\\hline \text { Operating expenses } & 675 \\\hline \text { Profit } & \$ 115 \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \$ 540 \\\hline \text { Average total assets } & \$ 4,400 \\\hline\end{array}$$
Per share data (these amounts stated in actual dollars, not millions) :
Noble reported earnings per share for the year of $6 and paid cash dividends of $2.00 per share. At year end, the Wall Street Journal listed Noble's shares as trading at $81 per share.
-Refer to the above data. Noble's return on equity was:

• A) 10%.
• B) 13%.
• C) 21%.
• D) Some other amount.

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Definitions:

Eastern Division

A segment or geographical section of a company that operates in the eastern region, often with its management structure and performance metrics.

Western Division

A geographical or organizational subdivision of a company that operates in the western region.

Internal Colonialism

Involves one race or ethnic group subjugating another in the same country. It prevents assimilation by segregating the subordinate group in terms of jobs, housing, and social contacts.

Domination

Domination is the exercise of control or influence over someone or something, often in a way that limits freedom and autonomy.