f Turnpoint Inc. has net income of $300,000, assets of $3,000,000, sales of $2,000,000, and debt of 1,300,000, what is their ROE?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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If Turnpoint Inc. has net income of $300,000, assets of $3,000,000, sales of $2,000,000, and debt of 1,300,000, what is their ROE? 

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Step 1

Return on Equity is a profitability metric that calculates the net income earned as a % of equity.

In this question, we are given the net income. We need to determine the value of equity by using the balance sheet principle as below:

Total assets = equity + debt

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