Solaris Technologies has a debt-equity ratio of 1.25. The return on assets (ROA) is 8.4 percent, and the total equity is $850,000. What is the return on equity (ROE)?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...
icon
Related questions
Question
100%

Please solve the accounting issue without use Ai

Solaris Technologies has a debt-equity ratio of 1.25. The return on assets
(ROA) is 8.4 percent, and the total equity is $850,000.
What is the return on equity (ROE)?
Transcribed Image Text:Solaris Technologies has a debt-equity ratio of 1.25. The return on assets (ROA) is 8.4 percent, and the total equity is $850,000. What is the return on equity (ROE)?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer