6- Zara reports total revenue of $200,000, cost of goods sold of $20,00 and its earnings before interest is $150,000. Its total assets are $300,000 and the owners invest $175,000? What is the Return on Financial leverage of Zara?
6- Zara reports total revenue of $200,000, cost of goods sold of $20,00 and its earnings before interest is $150,000. Its total assets are $300,000 and the owners invest $175,000? What is the Return on Financial leverage of Zara?
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
Problem 10PROB
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Please help me with show all calculation thanku
![6- Zara reports total revenue of $200,000, cost of goods sold of $20,00 and its earnings before
interest is $150,000. Its total assets are $300,000 and the owners invest $175,000? What is the
Return on Financial leverage of Zara?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc746fc46-4193-4786-aefe-a0152ec44e08%2F6dfadda5-1f17-411b-a4d1-f9330d2173cd%2F1j7igk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6- Zara reports total revenue of $200,000, cost of goods sold of $20,00 and its earnings before
interest is $150,000. Its total assets are $300,000 and the owners invest $175,000? What is the
Return on Financial leverage of Zara?
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