Multiple Choice
A firm has total assets of $900,000 and total liabilities of $400,000. There are no preference shareholders. Earnings before interest and taxes are $100,000. Interest is $21,000 and taxes are $34,000. The return on ordinary shareholders' funds is:
A) 8.0%.
B) 12.5%.
C) 9.0%.
D) 3.8%.
Correct Answer:

Verified
Correct Answer:
Verified
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