Homework Help is Here – Start Your Trial Now!
Business
Accounting
A company has a debt-to-asset ratio of 80%, $320,000 in debt, and a net income of $72,000. What is the company's return on equity? a. 85% b. 90% c. 75% d. 80%

A company has a debt-to-asset ratio of 80%, $320,000 in debt, and a net income of $72,000. What is the company's return on equity? a. 85% b. 90% c. 75% d. 80%

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 7EA: Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of...
See similar textbooks
icon
Related questions
Question

Kindly help me with accounting questions

A company has a debt-to-asset ratio of 80%, $320,000 in debt, and a net income of $72,000. What is the company's return on equity? a. 85% b. 90% c. 75% d. 80%
Transcribed Image Text:A company has a debt-to-asset ratio of 80%, $320,000 in debt, and a net income of $72,000. What is the company's return on equity? a. 85% b. 90% c. 75% d. 80%
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS