Last Year Gray Corp

question 107

Multiple Choice

Last year Gray Corp. had net sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 45.0%. The firm uses only debt and common equity as financing. Based on the DuPont equation, what was the ROE?

• A) 13.82%
• B) 14.51%
• C) 15.23%
• D) 16.00%

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Definitions:

Payoff Matrix

In game theory, a diagram that shows how the payoffs to each of the participants in a two-player game depend on the actions of both; a tool in analyzing interdependence.

Dominant Strategy

In game theory, an action that is a player’s best action regardless of the action taken by the other player.

Bottled Water

Water that is packaged in plastic or glass bottles and sold for personal consumption, often purified or spring water.

Game Theory

A field of mathematics that analyzes competitive situations where the outcome of a participant's choice of action depends on the actions of other participants.