Homework Help is Here – Start Your Trial Now!
Business
Accounting
Parkinson & Co. has a debt-equity ratio of 50%, sales of $15,000, net income of $3,000, and total debt of $18,000. What is the return on equity? a. 5.00 percent b. 16.67 percent c. 10.00 percent d. 8.33 percent e. 20.00 percent

Parkinson & Co. has a debt-equity ratio of 50%, sales of $15,000, net income of $3,000, and total debt of $18,000. What is the return on equity? a. 5.00 percent b. 16.67 percent c. 10.00 percent d. 8.33 percent e. 20.00 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
See similar textbooks
icon
Related questions
Question

What is the return on equity on these general accounting question?

Parkinson & Co. has a debt-equity ratio of 50%, sales of $15,000, net income of $3,000, and total debt of $18,000. What is the return on equity? a. 5.00 percent b. 16.67 percent c. 10.00 percent d. 8.33 percent e. 20.00 percent
Transcribed Image Text:Parkinson & Co. has a debt-equity ratio of 50%, sales of $15,000, net income of $3,000, and total debt of $18,000. What is the return on equity? a. 5.00 percent b. 16.67 percent c. 10.00 percent d. 8.33 percent e. 20.00 percent
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer