1. Profitability and Asset Management Ratios You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2008: net income = $690,000, total debt = $13.9 million, debt ratio = 44%. What is Tikki's ROE for 2008?
A) 3.90%
B) 4.96%
C) 11.27%
D) 2.18%
2. Statement of Retained Earnings Z, Corp. began the year 2008 with $2.3 million in retained earnings. The firm earned net income of $6.8 million in 2008 and paid $2.87 million to its common stockholders. What is the year-end 2008 balance in retained earnings for Z?
A) $6.23 million
B) $1.63 million
C) $9.1 million
D) $11.97 million