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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Financial 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F923a25be-9ce6-456a-9921-87799d876527%2F9ed979cd-b29e-46bb-b8f4-940a8f0c7460%2Fj491ipj_processed.jpeg&w=3840&q=75)
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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