Solve these general accounting problem do fast S. Panya has total assets of $1,000,000; common equity of $400,000; a grossprofit of $800,000; total operating expenses of $620,000; interest expense of$20,000; income taxes of $74,000; and preferred dividends of $30,000. Whatis S. Panya's return on equity?A. 20%B. 14%C. 7.5%D. 21.5%

Step 1: Return on equity can be calculated by dividing the Net income available to common…

Answered: S. Panya has total assets of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 7EB: Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of...

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S. Panya has total assets of $1,000,000; common equity of $400,000; a gross profit of $800,000; total operating expenses of $620,000; interest expense of $20,000; income taxes of $74,000; and preferred dividends of $30,000. What is S. Panya's return on equity? A. 20% B. 14% C. 7.5% D. 21.5%