Last year Vaughn Corp had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000 . The firm's total-debt-to-total-assets ratio was 42.5%. Based on the DuPont equation, what was Vaughn's ROE?
a. 14.77%
b. 15.51%
c. 16.28%
d. 17.10%
e. 17.95%
a
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Each of the following compound interest factors has the same number of periods (n) at the same interest rate (i). Which one is the table factor for the present value of a single sum?
A) 1.500730 B) 7.153291 C) 0.666342 D) 4.766540
Fixed costs per unit remain constant with levels of production
Indicate whether the statement is true or false
The U.S. GAAP and IASB require that firms record derivatives on the balance sheet date at
a. historical cost. b. fair value. c. amortized acquisition cost. d. future value of present cash flows. e. present value of future cash flows.
Which of the following statements concerning operating leverage is false?
a. Normally, a company which is highly labor intensive will have low fixed costs and therefore a low operating leverage. b. Normally, companies which have a high operating leverage will also have a high contribution margin ratio. c. Operating leverage measures the relationship between a company's variable and fixed cost. d. If a company has a low operating leverage, a small amount of sales will cause a large increase in profits.