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A firm has sales of $900, total assets of $550, and a debt ratio of 0.35. If its return on equity (ROE) is 16%, what is its net income? a) $57.20 b) $64 c) $72 d) $88 e) None of the above

A firm has sales of $900, total assets of $550, and a debt ratio of 0.35. If its return on equity (ROE) is 16%, what is its net income? a) $57.20 b) $64 c) $72 d) $88 e) None of the above

Intermediate Financial Management (MindTap Course List)
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 sales of $900, total assets of $550, and a debt ratio of 0.35. If its return on equity (ROE) is 16%, what is its net income? a) $57.20 b) $64 c) $72 d) $88 e) None of the above
Transcribed Image Text:A firm has sales of $900, total assets of $550, and a debt ratio of 0.35. If its return on equity (ROE) is 16%, what is its net income? a) $57.20 b) $64 c) $72 d) $88 e) None of the above
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