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?

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...
icon
Related questions
Question
100%

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?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning