Please give me correct answer this financial accounting question FlexTech Corporation had $3,500,000 in sales for the 2020 year. Thecompany earned 7% on each dollar of sales. The company turned overits assetstimes in 2020. The firm had a debt ratio of 40% in 2020.What was the return on stockholder's equity for 2020?

Step 1: Definition of Return on Equity (ROE) Return on Equity (ROE) is a financial ratio that…

Answered: FlexTech Corporation had $3,500,000 in…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 7P

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FlexTech Corporation had $3,500,000 in sales for the 2020 year. The company earned 7% on each dollar of sales. The company turned over its assets times in 2020. The firm had a debt ratio of 40% in 2020. What was the return on stockholder's equity for 2020?