Blue Ridge Technologies has a debt-equity ratio of 1.20. Its return on assets (ROA) is 9.25%, and its total equity is $820,000. What is the return on equity (ROE)?

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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Blue Ridge Technologies has a debt-equity ratio of 1.20.
Its return on assets (ROA) is 9.25%, and its total equity is
$820,000.
What is the return on equity (ROE)?
Transcribed Image Text:Blue Ridge Technologies has a debt-equity ratio of 1.20. Its return on assets (ROA) is 9.25%, and its total equity is $820,000. What is the return on equity (ROE)?
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