Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,700. The firm finances using only debt and common equity, and total assets equal total invested capital. Year-end assets were $250,000, and the firm's debt ratio (total-debt-to-total-capital ratio) was 15%. What was their ROE? Your answer should be between 7.12 and 15.40, rounded to 2 decimal places, with no special characters.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,700. The firm finances using
only debt and common equity, and total assets equal total invested capital. Year-end assets were $250,000,
and the firm's debt ratio (total-debt-to-total-capital ratio) was 15%. What was their ROE?
Your answer should be between 7.12 and 15.40, rounded to 2 decimal places, with no special characters.
Transcribed Image Text:Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,700. The firm finances using only debt and common equity, and total assets equal total invested capital. Year-end assets were $250,000, and the firm's debt ratio (total-debt-to-total-capital ratio) was 15%. What was their ROE? Your answer should be between 7.12 and 15.40, rounded to 2 decimal places, with no special characters.
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