A firm has a debt to equity ratio of 65%, debt of $520,000, and net income of $112,000. The return on equity is: a. 16% b. 15% c. 14% d. 10%

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 65%, debt of
$520,000, and net income of $112,000.
The return on equity is:
a. 16%
b. 15%
c. 14%
d. 10%
Transcribed Image Text:A firm has a debt to equity ratio of 65%, debt of $520,000, and net income of $112,000. The return on equity is: a. 16% b. 15% c. 14% d. 10%
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