Dew Point Dynamite, Inc

question 25

Multiple Choice

Dew Point Dynamite, Inc. generated a 1.23 total asset turnover in its latest fiscal year on assets of $2,112,077. The firm has total liabilities of $950,997. The firm's net profit margin was 10.3%. What is Dew Point's return on equity? Round to the nearest 0.1%.

• A) 23.1%
• B) 12.6%
• C) 5.5%
• D) 18.2%

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Definitions:

Residential Rental Property

Real estate property that is used for housing tenants and includes houses, apartments, and townhouses.

Nonresidential Real Property

Property used for business purposes, excluding those properties used for living accommodations.

Units-of-production

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces.