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A firm has a debt-to-asset ratio of 70%, total debt of $210,000, and net income of $45,000. What is the return on equity (ROE)? a. 55% b. 50% c. 48% d. 60%

A firm has a debt-to-asset ratio of 70%, total debt of $210,000, and net income of $45,000. What is the return on equity (ROE)? a. 55% b. 50% c. 48% d. 60%

Principles of Accounting Volume 2
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...
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A firm has a debt-to-asset ratio of 70%, total debt of $210,000, and net income of $45,000. What is the return on equity (ROE)? a. 55% b. 50% c. 48% d. 60%
Transcribed Image Text:A firm has a debt-to-asset ratio of 70%, total debt of $210,000, and net income of $45,000. What is the return on equity (ROE)? a. 55% b. 50% c. 48% d. 60%
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