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?
Transcribed Image Text: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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