National Co. had P24,000,000 in sales last year. The company’s net income was P500,000, its total assets turnover was 6.0, and the company’s ROE was 15 percent. The company is financed entirely with debt and common equity. What is the company’s debt ratio?

National Co. had P24,000,000 in sales last year. The company’s net income was P500,000, its total assets turnover was 6.0, and the company’s ROE was 15 percent. The company is financed entirely with debt and common equity. What is the company’s debt ratio?

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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