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Marshall McBride Inherited $10,000 from His Great Aunt Martha

Question 373

Multiple Choice

Marshall McBride inherited $10,000 from his Great Aunt Martha.He invested $5,000 in a new start-up venture,10th Generation,Inc. ,and the other $5,000 in Major Chemicals,Inc,a well-known chemical company that's been around for years.Yesterday,he gathered the following information from the financial statements of these companies At this time,Marshall's return on equity is:


A) 16% on the 10th Generation,Inc.stock;11% on the Major Chemicals,Inc.stock
B) 8.5% on the 10th Generation,Inc stock;10.5% on the Major Chemicals,Inc.stock
C) 2.24% on the 10th Generation,Inc stock;2.8% on the Major Chemicals,Inc.stock
D) 4.5% on the 10th Generation,Inc.stock;5.60% on the Major Chemicals,Inc.stock

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