A firm has a debt-to-equity ratio of 40%, total debt of $240,000, and net income of $96,000. What is the return on equity (ROE)?

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%, total debt
of $240,000, and net income of $96,000.
What is the return on equity (ROE)?
Transcribed Image Text:A firm has a debt-to-equity ratio of 40%, total debt of $240,000, and net income of $96,000. What is the return on equity (ROE)?
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