Shelton, Inc., has sales of S19.5 million and total assets of $14.2 million. Profit margin is 8%. What is the return on assets (ROA) ratio? (5 points) a, b. c. d. 25% 11% 16% None of the above Shelton, Inc., has sales of $21.5 mion, total assets of S11.1 million, and total liabilities of $5.8 million. Profit margin is 7%. What is the return on equity (ROE) ratio? (5 points) a. 28.4% b. 15.6% C. 35.3% d. None of the above The beta of PFE stock has been estimated as 1.4 using regression analysis on a sample of historical returns for the S&P 500. What is the interpretation of this equity beta? (10 points) a. b. c. d. e. As the S&P 500 increases by 1%, PFE increases by 0.4% As the S&P 500 increases by 1%, PFE decreases by 0.4% As the S&P 500 increases by 1%, PFE decreases by 1.4% As the S&P 500 increases by 1.4%, PFE increases by 1% As the S&P 500 increases by 1%, PFE increases by 1.4% (10 points) The risk-free rate and the expected market rate of return are 0.056 and 0.125, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on a security with a beta of 1.25 is equal to a. 0.142 b. 0.144 c. 0.153 d. 0.134