2. In the most recent year, the Decadent Hotel earned $150,000 of profit before tax, after...
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2. In the most recent year, the Decadent Hotel earned $150,000 of profit before tax, after the deduction of $30,000 in interest expense. The Hotel's liabilities are $600,000 and its owner's equity is $900,000. What is the hotel's return on total assets, before interest and tax? A. 13% В. 12% C. 11% D. 10.6% E. 9% 2. In the most recent year, the Decadent Hotel earned $150,000 of profit before tax, after the deduction of $30,000 in interest expense. The Hotel's liabilities are $600,000 and its owner's equity is $900,000. What is the hotel's return on total assets, before interest and tax? A. 13% В. 12% C. 11% D. 10.6% E. 9%
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Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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