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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting
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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