Rock Industries had sales of $415,000 last year and a net income of $28,245. Its year-end assets totaled $310,000. The firm’s total debt-to-total assets ratio was 40%. Based on the DuPont equation, what was Rock’s Return on Equity (ROE)?

Rock Industries had sales of $415,000 last year and a net income of $28,245. Its year-end assets totaled $310,000. The firm’s total debt-to-total assets ratio was 40%. Based on the DuPont equation, what was Rock’s Return on Equity (ROE)?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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