John Industries has a profit margin of 6.2%, total asset turnover of 2.1, and a return on equity (ROE) of 21.42%. What is the firm's debt-equity ratio? (Financial Accounting)

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 8P
icon
Related questions
Question
100%

Solve this problem

John Industries has a profit margin
of 6.2%, total asset turnover of 2.1,
and a return on equity (ROE) of
21.42%.
What is the firm's debt-equity
ratio? (Financial Accounting)
Transcribed Image Text:John Industries has a profit margin of 6.2%, total asset turnover of 2.1, and a return on equity (ROE) of 21.42%. What is the firm's debt-equity ratio? (Financial Accounting)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage