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Author Question: A company has sales of $640,000, net profit after taxes of $23,000, a total asset turnover of 4.17 ... (Read 25 times)

byomi

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Question 1

A company has a net loss for the year of $(10,000,000) and a deficit (negative equity) of $(1,000,000).  ROE will be
◦ 1000% indicating an exceptional opportunity.
◦ 1000% and meaningless.
◦ -1000% indicating that the company is in dire straits.
◦ 10.

Question 2

A company has sales of $640,000, net profit after taxes of $23,000, a total asset turnover of 4.17 and an equity multiplier of 1.67. What is the return on equity?
◦ 25.0%
◦ 9.0%
◦ 8.1%
◦ 4.5%


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Marked as best answer by byomi on Mar 29, 2022

Nutellas_Good

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byomi

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


tanna.moeller

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Reply 3 on: Yesterday
Excellent

 

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