The return on equity??? A firm has a debt to equity ratio of 50%, debt of $300,000, and netincome of $90,000.The return on equity is:a. 60%b. 15%c. 30%d. Insufficient informatione. None of the above.

Step 1: Write the formula for ROEStep 2: Express the debt-to-equity ratioStep 3: Rearrange the…

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

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter15: Capital Structure Decisions

Section: Chapter Questions

Problem 11P: The Rivoli Company has no debt outstanding, and its financial position is given by the following...

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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.
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A firm has a debt to equity ratio of 50%, debt of $300,000, and net income of $90,000. The return on equity is: a. 60% b. 15% c. 30% d. Insufficient information e. None of the above.