Assume All Assets Are Operating Assets; All Current Liabilities Are

$$\begin{array} { | l | r | r | } \hline & { 2006 } &{ 1005 } \\\hline \text { Current assets } & \$ 4,650 & \$ 4,730 \\\hline \text { Long-term assets } & 7,120 & 6,450 \\\hline \text { Current liabilities } & 1,440 & 1,340 \\\hline \text { Long-term debt } & 3,830 & 3,760 \\\hline \text { Common equity } & 6,500 & 6,080 \\\\\hline \text { Operating income } & 2,140& \\\hline \text { Interest expense } & 240 & \\\hline \text { Tax expense } ( 40 \% ) & 760& \\\hline \text { Net income } & 1,140 & \\\hline\end{array}$$ Assume all assets are operating assets; all current liabilities are operating liabilities.
-Return on equity for 2005 is:

A) 20.41%
B) 19.75%
C) 17.54%
D) 18.12%

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free