Mike's Diner has total assets of $200,000, a debt-equity ratio of 0.75, and a net income of $18,000. What is the return on equity (ROE)? a) 12.86 percent b) 14.50 percent c) 15.75 percent d) 16.25 percent e) 13.75 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
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Mike's Diner has total assets of $200,000, a debt-equity ratio of
0.75, and a net income of $18,000.
What is the return on equity (ROE)?
a) 12.86 percent
b) 14.50 percent
c) 15.75 percent
d) 16.25 percent
e) 13.75 percent
Transcribed Image Text:Mike's Diner has total assets of $200,000, a debt-equity ratio of 0.75, and a net income of $18,000. What is the return on equity (ROE)? a) 12.86 percent b) 14.50 percent c) 15.75 percent d) 16.25 percent e) 13.75 percent
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