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
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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Financial Accounting

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
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