Crestline Inc. borrows $0.60 for every $1 of equity. They earn $0.30 in profit for every $1 of equity in the firm. What is the firm's return on assets (ROA)?

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
icon
Related questions
Question

Solve this General accounting problem

Crestline Inc. borrows $0.60 for every
$1 of equity. They earn $0.30 in profit
for every $1 of equity in the firm.
What is the firm's return on assets
(ROA)?
Transcribed Image Text:Crestline Inc. borrows $0.60 for every $1 of equity. They earn $0.30 in profit for every $1 of equity in the firm. What is the firm's return on assets (ROA)?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer