A coffee shop has a return on assets of 12%. The coffee shop's total assets amount to $350,000, while its owner's equity is $140,000 and its debt equals $210,000. What is the return on equity for the coffee shop?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...
icon
Related questions
Question

Don't use ai and accounting question

A coffee shop has a return on assets of 12%. The coffee shop's total assets
amount to $350,000, while its owner's equity is $140,000 and its debt equals
$210,000.
What is the return on equity for the coffee shop?
Transcribed Image Text:A coffee shop has a return on assets of 12%. The coffee shop's total assets amount to $350,000, while its owner's equity is $140,000 and its debt equals $210,000. What is the return on equity for the coffee shop?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer