The return on equity is_. A firm has a debt to equity ratio of 40%, debt of $350,000, and net income of$95,000.The return on equity is:a. 16.32%b. 15.89%c. 30.12%d. 10.86%e. None of the above.

To calculate the return on equity (ROE), we can use the formula: ROE=EquityNet Income×100Given the…

Answered: A firm has a debt to equity ratio of…

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 to equity ratio of 40%, debt of $350,000, and net income of $95,000. The return on equity is: a. 16.32% b. 15.89% c. 30.12% d. 10.86% e. None of the above.