What is the firm return on equity

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1. Andrade Corp has debt of $2,835,000, total assets of $5,178,000, sales of $8,234,100, and net income of $812,300. What is the firm’s return on equity (ROE)?

7.1%

34.7%

28.1%

43.2%

2. Which one of the following statements about time value of money is NOT true?

For a given interest rate, the longer the time period, the lower the present value of a future cash flow

A 10% compounding rate results in greater future value than a 10% simple rate.

A dollar today is worth more than a dollar to be received in the future.

For a given time period, the higher the discount rate, the greater the present value of a future cash flow.

Reference no: EM131821470

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