Ques. 17) Knox Corp. plans to sell 1,000 units i…

Ques. 17) Knox Corp. plans to sell 1,000 units in 2011 at an average sale price of $40 each. Cost of goods sold will be 40% of the sale price. Depreciation expense will be $2,500, interest expense $1,500, and other expenses will be $3,000. Wessel’s tax rate is 35%. What will Knox Corp.’s net income be for 2011? a. $ 9,500 b. $ 6,875 c. $14,200 d. $11,050 e. $28,430 Ques. 18) What is the return on stockholders’ equity for a firm with a net profit margin of 4.9 percent, sales of $350,000, an equity multiplier of 1.6, and total assets of $215,000? a. 12.76% b. 15.24% c. 12.57% d. 8.88%