Financial Accounting: Return on assets A company borrows $0.70 for every $1 of equity. They earn $0.25 in profit for every $1 of equity in the firm. What is the firm's return on assets (ROA)?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
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Financial Accounting: Return on assets
A company borrows $0.70 for every $1 of
equity. They earn $0.25 in profit for every
$1 of equity in the firm. What is the firm's
return on assets (ROA)?
Transcribed Image Text:Financial Accounting: Return on assets A company borrows $0.70 for every $1 of equity. They earn $0.25 in profit for every $1 of equity in the firm. What is the firm's return on assets (ROA)?
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