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Perot Company Had Profit Before Interest and Taxes of $120,000

Question 21

Multiple Choice

Perot Company had profit before interest and taxes of $120,000. Interest expense for the period was $17,000 and income taxes amounted to $28,500. The average shareholders' equity was $680,000. What is Perot's return on equity?


A) 10.96%
B) 13.46%
C) 15.15%
D) 17.65%

Correct Answer:

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