Earth Alliance Corp. has a profit margin of 10%, total asset turnover of 1.50, and ROE of 24%, so its debt-equity ratio should be a. 0.60 b. 0.80 c. 1.20 d. 1.60 e. 2.00

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 7EA: Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of...
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General Accounting Question Pls Need Answer with given option

Earth Alliance Corp. has a profit margin of 10%, total asset
turnover of 1.50, and ROE of 24%, so its debt-equity ratio
should be
a. 0.60
b. 0.80
c. 1.20
d. 1.60
e. 2.00
Transcribed Image Text:Earth Alliance Corp. has a profit margin of 10%, total asset turnover of 1.50, and ROE of 24%, so its debt-equity ratio should be a. 0.60 b. 0.80 c. 1.20 d. 1.60 e. 2.00
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