River Corp's Total Assets at the End of Last Year

question 101

Multiple Choice

River Corp's total assets at the end of last year were $480,000 and its net income was $32,750.What was its return on total assets?

• A) 6.28%
• B) 5.73%
• C) 6.82%
• D) 6.48%
• E) 7.71%

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Definitions:

Firm Commitment Underwriting

A type of underwriting where the underwriter buys the entire offering from the issuer and sells it to investors, assuming full financial risk.

Underwriting Spread

The difference between the amount underwriters pay to acquire securities from the issuer and the price at which they sell these securities to investors.

Shares

Portions of ownership in a corporation or financial asset available to investors.

Market Value

Market value is the current price at which an asset or service can be bought or sold in a marketplace, reflecting the value that market participants assign to it.