Answer this Question If a business has a net income of $44,700and total equity of $111,750, what is theROE?a. 10%b. 15%c. 40%d. 25%

Step 1: The net income of a business is $44,700. The total equity of the business is $111,750. Sep…

Answered: If a business has a net income of…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 4SEQ: If total assets are $20,000 and total liabilities are $12,000, the amount of stockholders’ equity...

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Similar questions

If equity equals $100,000, which of the following is true? A. Assets exceed liabilities by $100,000. B. Liabilities exceed equity by $100,000. C. . D. None of the above is true.
Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.
Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels current ratio? a. 3 c. 1 b. 2 d. 0.5
Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of $5,500,000 with a cost of capital of 10.5%. What is Skylers weighted average cost of capital?
Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of $4,500,000 with a cost of capital of 11.5%. What is Tylers weighted average cost of capital?
Compute the following profitability measures for Esplanade Enterprises for 20-2: (a) Profit margin ratio (b) Return on assets (ROA) (c) Return on common stockholders equity (ROE) (d) Earnings per share of common stock (EPS)
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
The capital structure of Ridley Enterprises Is: Debt 40%, Equity 60%. The cost of debt is 13%, and the cost of equity is 16.5%. What is the weighted average cost of capital for Ridley Enterprises? A. 14.4% B. 15.1% C. 16.2% D. 13.8%
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Required: 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.
RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.3 Return on assets (ROA) 4.0% Return on equity (ROE) 8.0%
Selected information for Berry Company is as follows: Berrys return on equity rounded to the nearest percentage point is: a. 20%. c. 28%. b. 21%. d. 40%.
Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9 of this chapter. Based upon these statements, answer the following questions. The percent that a company adds to its cost of sales to determine the selling price is called a markup. That is Hershey’s markup percent? Round to one decimal place.

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If a business has a net income of $44,700 and total equity of $111,750, what is the ROE? a. 10% b. 15% c. 40% d. 25%