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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A firm has a debt to equity ratio
Transcribed Image Text: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.
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