Asked by alexis nuara on Jul 20, 2024
Verified
Using the data provided for Diane Company, what is the return on total assets?
A) 10%
B) 8%
C) 0.1%
D) 1%
Return on Total Assets
A financial ratio that measures a company's profitability relative to its total assets.
- Comprehend the computation and significance of return on total assets, asset turnover, and return on common stockholders' equity.
Verified Answer
ZK
Zybrea KnightJul 21, 2024
Final Answer :
A
Explanation :
The return on total assets (ROTA) is calculated by dividing the net income by the total assets. Without specific numbers for Diane Company's net income or total assets, we cannot calculate an exact percentage. However, given the options, if the question implies that the correct answer is among them, A) 10% would be a plausible return on total assets in a general business context, assuming it was derived from the provided data.
Learning Objectives
- Comprehend the computation and significance of return on total assets, asset turnover, and return on common stockholders' equity.
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