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A company has a total debt-equity ratio of 55%, sales of $950,000, net income of $25,000, and total liabilities of $200,000. What is the return on equity?

A company has a total debt-equity ratio of 55%, sales of $950,000, net income of $25,000, and total liabilities of $200,000. What is the return on equity?

Intermediate Financial Management (MindTap Course List)
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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What is the return on equity on these accounting question?

A company has a total debt-equity ratio of 55%, sales of $950,000, net income of $25,000, and total liabilities of $200,000. What is the return on equity?
Transcribed Image Text:A company has a total debt-equity ratio of 55%, sales of $950,000, net income of $25,000, and total liabilities of $200,000. What is the return on equity?
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