Use the Following Information to Answer the Next Ten Questions

question 76

Multiple Choice

Use the following information to answer the next ten questions:
Excerpts from Stealth Company's December 31,2015 and 2014,financial statements are presented below:

-Stealth Company's 2015 return on equity is:

• A)17.1%.
• B)14.0%.
• C)12.6%.
• D)7.1%.

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Definitions:

Strip Bonds

Fixed-income securities that are derived from separating the principal and interest payments of a bond, which are then sold as individual zero-coupon bonds.

RRSP

The Registered Retirement Savings Plan is a financial tool for Canadian workers and self-employed persons, facilitating savings and investments for retirement.

Yield

The return in terms of income from an investment, like dividends or interest earned by possessing a specific security.

Compound-interest

Interest computed on both the original sum invested or loaned, as well as on the interest that has been added to this principal amount over earlier periods.