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A company reports sales of $1,500, total assets of $1,200, and a debt ratio of 0.35. If its return on equity (ROE) is 15%, what is its net income? a) $117.00 b) $125.20 c) $135.80 d) $145.50

A company reports sales of $1,500, total assets of $1,200, and a debt ratio of 0.35. If its return on equity (ROE) is 15%, what is its net income? a) $117.00 b) $125.20 c) $135.80 d) $145.50

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
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A company reports sales of $1,500, total assets of $1,200, and a debt ratio of 0.35. If its return on equity (ROE) is 15%, what is its net income? a) $117.00 b) $125.20 c) $135.80 d) $145.50
Transcribed Image Text:A company reports sales of $1,500, total assets of $1,200, and a debt ratio of 0.35. If its return on equity (ROE) is 15%, what is its net income? a) $117.00 b) $125.20 c) $135.80 d) $145.50
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