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, andtotal liabilities of $200,000. What is the returnon equity?

Step 1: Define Profitability RatioProfitability ratios reflect how efficiently a firm utilizes its…

Answered: A company has a total debt-equity ratio…

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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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?