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A firm has a debt-equity ratio of 50%, debt of $300,000, and net income of $90,000. The return on equity: A. 60% B. 15% C. 30% D. not enough information

A firm has a debt-equity ratio of 50%, debt of $300,000, and net income of $90,000. The return on equity: A. 60% B. 15% C. 30% D. not enough information

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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A firm has a debt-equity ratio of 50%, debt of $300,000, and net income of $90,000. The return on equity: A. 60% B. 15% C. 30% D. not enough information
Transcribed Image Text:A firm has a debt-equity ratio of 50%, debt of $300,000, and net income of $90,000. The return on equity: A. 60% B. 15% C. 30% D. not enough information
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