Solve this financial accounting problem 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%

Explanation of Debt to Equity Ratio: The debt to equity ratio is a financial leverage ratio that…

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

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%