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Johnson's Retail Store has a debt-ratio of 35 percent, sales of $850,000, net income of $55,000, and total debt of $245,000. What is the return on equity? a) 11.25% b) 12.09% c) 12.75% d) 13.15%

Johnson's Retail Store has a debt-ratio of 35 percent, sales of $850,000, net income of $55,000, and total debt of $245,000. What is the return on equity? a) 11.25% b) 12.09% c) 12.75% d) 13.15%

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...
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Johnson's Retail Store has a debt-ratio of 35 percent, sales of $850,000, net income of $55,000, and total debt of $245,000. What is the return on equity? a) 11.25% b) 12.09% c) 12.75% d) 13.15%
Transcribed Image Text:Johnson's Retail Store has a debt-ratio of 35 percent, sales of $850,000, net income of $55,000, and total debt of $245,000. What is the return on equity? a) 11.25% b) 12.09% c) 12.75% d) 13.15%
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