Lee sun' has sales of $3,000, total assets of $2,500, and a profit margin of 5 percent. The firm has a total debt ratio of 40 percent. What is the return on equity? A. 10 percent B. 8 percent C. 6 percent D. 12 percent E. 15 percent

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
Problem 16PROB
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General accounting

Lee sun' has sales of $3,000, total assets of $2,500, and
a profit margin of 5 percent. The firm has a total debt
ratio of 40 percent. What is the return on equity?
A. 10 percent
B. 8 percent
C. 6 percent
D. 12 percent
E. 15 percent
Transcribed Image Text:Lee sun' has sales of $3,000, total assets of $2,500, and a profit margin of 5 percent. The firm has a total debt ratio of 40 percent. What is the return on equity? A. 10 percent B. 8 percent C. 6 percent D. 12 percent E. 15 percent
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