Profitability and asset management ratios

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Reference no: EM131359117

1. Profitability and Asset Management Ratios You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2008: net income = $690,000, total debt = $13.9 million, debt ratio = 44%. What is Tikki's ROE for 2008?

A) 3.90%

B) 4.96%

C) 11.27%

D) 2.18%

2. Statement of Retained Earnings Z, Corp. began the year 2008 with $2.3 million in retained earnings. The firm earned net income of $6.8 million in 2008 and paid $2.87 million to its common stockholders. What is the year-end 2008 balance in retained earnings for Z?

A) $6.23 million

B) $1.63 million

C) $9.1 million

D) $11.97 million

Reference no: EM131359117

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