Given the following data: EBIT: $200,000 Net income: $120,000 Common equity: $1,000,000 Total Assets: $1,500,000 Calculate the Return on Equity. a. 10% b. 12% c. 20% d. 8% e. none of the given ones

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 17MC: If equity equals $100,000, which of the following is true? A. Assets exceed liabilities by $100,000....
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General Accounting

Given the following data:
EBIT: $200,000
Net income: $120,000
Common equity: $1,000,000
Total Assets: $1,500,000
Calculate the Return on Equity.
a. 10%
b. 12%
c. 20%
d. 8%
e. none of the given ones
Transcribed Image Text:Given the following data: EBIT: $200,000 Net income: $120,000 Common equity: $1,000,000 Total Assets: $1,500,000 Calculate the Return on Equity. a. 10% b. 12% c. 20% d. 8% e. none of the given ones
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