Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year- end assets were $210,000. The firm's total debt-to-total assets ratio was 30%. Based on the DuPont equation, what was Vaughn's ROE?

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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Last year Vaughn Corp. had
sales of $315,000 and a net
income of $17,832, and its year-
end assets were $210,000. The
firm's total debt-to-total assets
ratio was 30%.
Based on the DuPont equation,
what was Vaughn's ROE?
Transcribed Image Text:Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year- end assets were $210,000. The firm's total debt-to-total assets ratio was 30%. Based on the DuPont equation, what was Vaughn's ROE?
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