Mars Corporation Has Provided the Following Data for Year 2

question 111

Multiple Choice

Mars Corporation has provided the following data for Year 2: The company's total stockholders' equity at the end of Year 2 amounted to $1,095,000 and at the end of Year 1 to $1,060,000. The company's return on equity for Year 2 is closest to:

• A)5.91%
• B)7.40%
• C)3.84%
• D)71.20%

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Definitions:

Corporate Bonds

Debt securities issued by corporations to finance their operations, expansions, or projects, which pay interest to the holder until maturity.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources, sold or leased to earn profit.

Investment Objectives

The financial goals or desired outcomes that motivate an individual or entity to invest, which guide the selection of investment strategies and asset classes.

Risk Tolerance

An investor's capacity or willingness to endure market volatility and potential for loss in exchange for the possibility of higher returns.