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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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the return on equity on these financial accounting question?

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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