Patricia Industries has a total debt-equity ratio of 80%, sales of $1,750,000, net income of $52,500, and total liabilities of $320,000. What is Patricia Industries' return on equity (ROE)?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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Please provide the accurate answer to this financial accounting problem using appropriate methods.

Patricia Industries has a total
debt-equity ratio of 80%, sales
of $1,750,000, net income of
$52,500, and total liabilities of
$320,000.
What is Patricia Industries' return
on equity (ROE)?
Transcribed Image Text:Patricia Industries has a total debt-equity ratio of 80%, sales of $1,750,000, net income of $52,500, and total liabilities of $320,000. What is Patricia Industries' return on equity (ROE)?
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