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1)Sam's Furniture has a taxable income of $197,400, ROA of 4

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1)Sam's Furniture has a taxable income of $197,400, ROA of 4.8 percent, a debt-equity ratio of 0.72, and a very smart CFO. What is the firm’s ROE?

A. 8.26 percent

B. 14.45 percent

C. 11.67 percent

2)Susan Lollipops has inventory of $147,500, equity of $320,000, total assets of $800,780, and net sales of $658,800. What is the common-size percentage for the inventory account?

A. 18.42 percent

B. 46.09 percent

C. 22.39 percent

3)Zoe Homeware gives credit to their customers at a monthly rate of 1.05 percent. What is the effective annual rate of this credit offer?

A. 13.80 percent

B. 14.71 percent

C. 13.35 percent