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.

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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General Accounting

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.
Transcribed Image Text: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.
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