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KAYLENDAYNE ROYER
on Nov 08, 2024

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Calculate total asset value given the following information: ROA = 5%; Total equity = $600,000 and ROE = 8%.

A) $960,000
B) $1,100,000
C) $1,200,000
D) $1,300,000
E) $1,400,000

ROA

Return on Assets; a profitability ratio that measures how efficiently a company can manage its assets to produce profits during a period.

Total Equity

The residual interest in the assets of an entity after deducting liabilities; essentially, it represents the ownership value in the firm.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

  • Analyze the relationship between total assets, equity, and return figures.
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JarDee NessenNov 12, 2024
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