Below Is Selected Information from Tricrop -Return on Common Equity for Year 1 Is:
A) 19

Below is selected information from Tricrop.
$$\begin{array} { | l | c | c | } \hline & \underline { \text { Year 1 } } & \underline { \text { Year 2 } } \\\hline \begin{array} { l } \text { Net operating assets } \\\text { /common equity }\end{array} & 1.37 & 1.53 \\\hline \begin{array} { l } \text { Net operating profit } \\\text { margin }\end{array} & 19 \% & 21 \% \\\hline \text { Income tax rate } & 47 \% & 28 \% \\\hline \begin{array} { l } \text { Revenues/net operating } \\\text { assets }\end{array} & 0.81 & 0.61 \\\hline \text { EBIT/revenues } & 38 \% & 32 \% \\\hline\end{array}$$
-Return on Common Equity for Year 1 is:

A) 19.0%
B) 19.60%
C) 21.08%
D) 26.03%

Correct Answer:

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