Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt ratio of 64 percent. What is the return on equity? a) 19.64 percent b) 21.03 percent c) 18.56 percent d) 13.09 percent e) 16.04 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
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What is the return on equity on these accounting question?

Reliable Cars has sales of $807,200, total assets of $1,105,100,
and a profit margin of 9.68 percent. The firm has a total debt
ratio of 64 percent. What is the return on equity?
a) 19.64 percent
b) 21.03 percent
c) 18.56 percent
d) 13.09 percent
e) 16.04 percent
Transcribed Image Text:Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt ratio of 64 percent. What is the return on equity? a) 19.64 percent b) 21.03 percent c) 18.56 percent d) 13.09 percent e) 16.04 percent
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