Solve this general accounting problem In 2018 XYZ Co. had sales of $86 billion and a net income of $41 billion,and its year-end total assets were $210 billion. The firm's total debt-to-total assets ratio was 46.9%. Based on the DuPont equation, what wasXYZ Co.'s ROE in 2018?a) 22.97%b) 36.77%c) 25.62%d) 21.02%e) 14.01%

Explanation of DuPont Equation: The DuPont equation is a powerful financial analysis tool that…

Answered: In 2018 XYZ Co. had sales of $86…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 23MCQ

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In 2018 XYZ Co. had sales of $86 billion and a net income of $41 billion, and its year-end total assets were $210 billion. The firm's total debt-to- total assets ratio was 46.9%. Based on the DuPont equation, what was XYZ Co.'s ROE in 2018? a) 22.97% b) 36.77% c) 25.62% d) 21.02% e) 14.01%