Homework Help is Here – Start Your Trial Now!
Business
Accounting
Skyline Tools Ltd. has a debt-to-equity ratio of 75%, total debt of $450,000, and net income of $120,000. What is the Return on Equity (ROE)? a. 12% b. 18% c. 20% d. None of the above

Skyline Tools Ltd. has a debt-to-equity ratio of 75%, total debt of $450,000, and net income of $120,000. What is the Return on Equity (ROE)? a. 12% b. 18% c. 20% d. None of the above

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 17MC: If equity equals $100,000, which of the following is true? A. Assets exceed liabilities by $100,000....
See similar textbooks
icon
Related questions
Question
100%

What is the Return on Equity on these accounting question?

Skyline Tools Ltd. has a debt-to-equity ratio of 75%, total debt of $450,000, and net income of $120,000. What is the Return on Equity (ROE)? a. 12% b. 18% c. 20% d. None of the above
Transcribed Image Text:Skyline Tools Ltd. has a debt-to-equity ratio of 75%, total debt of $450,000, and net income of $120,000. What is the Return on Equity (ROE)? a. 12% b. 18% c. 20% d. None of the above
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS