A Firm Has a Return on Equity of 20% and a Total

question 96

Multiple Choice

A firm has a return on equity of 20% and a total asset turnover of 4. Assuming a debt ratio of 50% and sales of $1,000,000, calculate net income.

• A) $25,000
• B) $50,000
• C) $75,000
• D) $100,000

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Definitions:

Performed

Executed or carried out a task or action.

Tasks

Specific activities or duties that are assigned as part of a job role or project execution.

Selection

The process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals.

Necessary Knowledge

The essential information and skills required to perform tasks or understand concepts effectively.