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A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of ____. A) 3 per cent B) 15 per cent C) 20 per cent D) 4 per cent

A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of ____. A) 3 per cent B) 15 per cent C) 20 per cent D) 4 per cent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of ____. A) 3 per cent B) 15 per cent C) 20 per cent D) 4 per cent
Transcribed Image Text:A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of ____. A) 3 per cent B) 15 per cent C) 20 per cent D) 4 per cent
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