Accounting solution please and correct Alpha Corp. had a net income of $72,000 on sales of $800,000. Total assets are$600,000 at the end of the fiscal year. The firm's debt to assets ratio was 45%.What is the return on equity?A. 12.00%B. 21.82%C. 16.67%D. 24.00%

Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a measure of a company's…

Answered: Alpha Corp. had a net income of $72,000…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

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Problem 2P

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Alpha Corp. had a net income of $72,000 on sales of $800,000. Total assets are $600,000 at the end of the fiscal year. The firm's debt to assets ratio was 45%. What is the return on equity? A. 12.00% B. 21.82% C. 16.67% D. 24.00%