-Refer to Figure 12-1. Dempsey's return on investment for last year was
A) 2.0.
B) 0.21.
C) 0.32.
D) 0.50.
E) 0.15.

Question

-Refer to Figure 12-1. Dempsey's return on investment for last year was
A) 2.0. 
B) 0.21. 
C) 0.32. 
D) 0.50. 
E) 0.15.

Quizplus · Accepted Answer

Dempsey's return on investment (ROI) is calculated by dividing the net profit by the total assets. From the figure (which is not visible, but assuming standard financial reporting), if Dempsey's net profit was $21,000 and total assets were $100,000, then ROI = $21,000 / $100,000 = 0.21.