Lena's Bakery has a return on assets (ROA) of 10%. The company's total assets are $200, of which $70 is owner's equity and the rest is debt. What is Lena's return on equity (ROE)?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter2: Analysis Of Financial Statements
Section: Chapter Questions
Problem 16PROB
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Lena's Bakery has a return on assets (ROA) of 10%. The
company's total assets are $200, of which $70 is
owner's equity and the rest is debt. What is Lena's
return on equity (ROE)?
Transcribed Image Text:Lena's Bakery has a return on assets (ROA) of 10%. The company's total assets are $200, of which $70 is owner's equity and the rest is debt. What is Lena's return on equity (ROE)?
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