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%.

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The Answer of 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%.

A Firm Has Total Assets of $900,000 and Total Liabilities