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A Firm Has Total Assets of $800,000 and Total Liabilities

Question 61

Multiple Choice

A firm has total assets of $800,000 and total liabilities of $300,000. Earnings before interest and taxes are $100,000. Interest is $21,000 and taxes are $34,000. The return on shareholders' funds is:


A) 9.0%.
B) 8.0%.
C) 12.5%.
D) 3.8%.

Correct Answer:

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