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Company ABC has a market capitalization of $750 million, Book Value (Shareholders Equity) Per share of $15 and net income of $25 million. If the

Company ABC has a market capitalization of $750 million, Book Value (Shareholders Equity) Per share of $15 and net income of $25 million. If the stock is currently trading at $30. The Return on Equity is:

A.

3.3%

B.

6.7%

C.

9.3%

D.

50.0%

2.

The current ratio of Company X is 3.0 times. Company X has working capital of $20,000. Total Current Assets for Company X are:

A.

$6,667

B.

$10,000

C.

$30,000

D.

$60,000

3.

Company X reports $200,000 in sales of Widgets in 2016. The Costs of Goods sold for these Widgets is $90,000. All other operating expenses (SG&A, R&D, Depreciation, Other, etc.) are $50,000. Which of the following is the correct representation of the profitability ratios:

A.

Gross Profit Margin 45%, Operating Margin 30%.

B.

Gross Profit Margin 55%, Operating Margin 30%.

C.

Gross Profit Margin 45%, Operating Margin 20%.

D.

Gross Profit Margin 55%, Operating Margin 20%.

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