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Mountain View Motors has sales of $5,000,000, total assets of $4,500,000, and a profit margin of 6 percent. The firm has a total debt ratio of 50 percent. What is the return on equity (ROE)? a. 9.50 percent b. 8.00 percent c. 12.00 percent d. 13.33 percent

Mountain View Motors has sales of $5,000,000, total assets of $4,500,000, and a profit margin of 6 percent. The firm has a total debt ratio of 50 percent. What is the return on equity (ROE)? a. 9.50 percent b. 8.00 percent c. 12.00 percent d. 13.33 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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What is the return on equity on these general accounting question?

Mountain View Motors has sales of $5,000,000, total assets of $4,500,000, and a profit margin of 6 percent. The firm has a total debt ratio of 50 percent. What is the return on equity (ROE)? a. 9.50 percent b. 8.00 percent c. 12.00 percent d. 13.33 percent
Transcribed Image Text:Mountain View Motors has sales of $5,000,000, total assets of $4,500,000, and a profit margin of 6 percent. The firm has a total debt ratio of 50 percent. What is the return on equity (ROE)? a. 9.50 percent b. 8.00 percent c. 12.00 percent d. 13.33 percent
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