Question $1$

Jones Inc. has sales of $$1,000,000,$ total assets of $$2,500,000,$ and a profit margin of $3$ percent. The firm has a total

debt ratio of $35$ percent. What is the return on equity?

$1\mathrm{.}8\%$

$1\mathrm{.}4\%$

$3\mathrm{.}0\%$

$3\mathrm{.}6\%$

Question $2$

What is the commonly$-$cited objective of corporate managers in make decisions for a firm?

Maximize the value of common shares outstanding.

Maximize total revenue.

Minimize total expenses.

Minimize the risk of bankruptcy.