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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...
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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%
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