The Following Information Is Available What Is the Return on Equity? (Round to the Nearest

question 85

Multiple Choice

The following information is available: $\begin{array}{ll}\text { Sales } & \$ 400,000 \\\text { Profit } & \$ 20,000 \\\text { Retained Earnings } & \$ 40,000 \\\text { Avg. Shareholders' Equity } & \$ 130,000 \\\text { Dividends } & \$ 6,000\end{array}$ What is the return on equity? (round to the nearest number)

• A) 5%.
• B) 20%.
• C) 25%.
• D) 15%.

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Definitions:

Efficiency

The optimal allocation of resources to produce goods and services in a way that maximizes output with the least waste or cost.

ATC Curve

A graph showing the average total cost of producing different quantities of a good, illustrating how costs change with output levels.

Efficient

The characteristic of a resource allocation where it is impossible to improve the situation of one party without worsening the situation of another.

Skateboards

Skateboards are a type of sports equipment used for skateboarding, consisting of a flat board with wheels attached.