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Reliable Cars has sales of $3,950, total assets of $3,150, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity? a) 8.47 percent b) 10.63 percent c) 6.27 percent d) 15.29 percent e) 12.20 percent

Reliable Cars has sales of $3,950, total assets of $3,150, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity? a) 8.47 percent b) 10.63 percent c) 6.27 percent d) 15.29 percent e) 12.20 percent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Reliable Cars has sales of $3,950, total assets of $3,150, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity? a) 8.47 percent b) 10.63 percent c) 6.27 percent d) 15.29 percent e) 12.20 percent
Transcribed Image Text:Reliable Cars has sales of $3,950, total assets of $3,150, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity? a) 8.47 percent b) 10.63 percent c) 6.27 percent d) 15.29 percent e) 12.20 percent
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