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Profitability and Asset Management Ratios You Are Thinking of Investing

Question 107

Multiple Choice

Profitability and Asset Management Ratios You are thinking of investing in Tikki's Torches,Inc.You have only the following information on the firm at year-end 2011: net income = $500,000,total debt = $12 million,and debt ratio = 40 percent.What is Tikki's ROE for 2011?


A) 1.67 percent
B) 2.78 percent
C) 4.17 percent
D) 10.42 percent

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