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?

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

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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?

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