A firm earns $.17 in profit for every $1 of equity in the firm. The company borrows $.60 for every $1 of equity. What is the firm's return on assets? A) 10.63% B) 13.53% C) 25.15% D) 26.07% E) 28.33%
A firm earns $.17 in profit for every $1 of equity in the firm. The company borrows $.60 for every $1 of equity. What is the firm's return on assets? A) 10.63% B) 13.53% C) 25.15% D) 26.07% E) 28.33%
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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Transcribed Image Text:A firm earns $.17 in profit for every $1 of equity in the firm.
The company borrows $.60 for every $1 of equity. What is the
firm's return on assets?
A) 10.63%
B) 13.53%
C) 25.15%
D) 26.07%
E) 28.33%
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