Homework Help is Here – Start Your Trial Now!
Business
Accounting
A company has a profit margin of 12 percent on sales of $35,000,000. The company has total liabilities of $12,500,000, shareholders' equity of $17,500,000, and an after-tax interest expense on debt of 6 percent. What is the company's Return on Assets (ROA)? a. 10.5% b. 11.7% c. 12.0% d. 14.0% e. 15.6%

A company has a profit margin of 12 percent on sales of $35,000,000. The company has total liabilities of $12,500,000, shareholders' equity of $17,500,000, and an after-tax interest expense on debt of 6 percent. What is the company's Return on Assets (ROA)? a. 10.5% b. 11.7% c. 12.0% d. 14.0% e. 15.6%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
See similar textbooks
icon
Related questions
Question

answer ?? : General accounting question

A company has a profit margin of 12 percent on sales of $35,000,000. The company has total liabilities of $12,500,000, shareholders' equity of $17,500,000, and an after-tax interest expense on debt of 6 percent. What is the company's Return on Assets (ROA)? a. 10.5% b. 11.7% c. 12.0% d. 14.0% e. 15.6%
Transcribed Image Text:A company has a profit margin of 12 percent on sales of $35,000,000. The company has total liabilities of $12,500,000, shareholders' equity of $17,500,000, and an after-tax interest expense on debt of 6 percent. What is the company's Return on Assets (ROA)? a. 10.5% b. 11.7% c. 12.0% d. 14.0% e. 15.6%
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS