Answered: Rainbow Company has a debt-equity ratio…

Rainbow Company has a debt-equity ratio of 1.36. Return on assets is 7.61 percent, and total equity is $680,000. What is the return on equity?

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 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...

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Rainbow Company has a debt-equity ratio of
1.36. Return on assets is 7.61 percent, and
total equity is $680,000. What is the return on
equity?

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