A company has a debt-to-equity ratio of 0.80 and earns $0.20 in profit for every $1 of equity. What is the company's return on assets (ROA)? a. 9.75 percent b. 11.11 percent c. 15.00 percent d. 18.50 percent
A company has a debt-to-equity ratio of 0.80 and earns $0.20 in profit for every $1 of equity. What is the company's return on assets (ROA)? a. 9.75 percent b. 11.11 percent c. 15.00 percent d. 18.50 percent
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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Transcribed Image Text:A company has a debt-to-equity ratio of 0.80 and earns $0.20 in profit for every $1 of equity. What is
the company's return on assets (ROA)?
a. 9.75 percent
b. 11.11 percent
c. 15.00 percent
d. 18.50 percent
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