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Sophia's Auto Shop has sales of $920,500, total assets of $815,300, and a profit margin of 7.25 percent. The firm has a total debt ratio of 50 percent. What is the return on equity? A) 14.75 percent B) 15.22 percent C) 16.37 percent D) 13.88 percent E) 17.04 percent Answer: C) 16.37 percent

Sophia's Auto Shop has sales of $920,500, total assets of $815,300, and a profit margin of 7.25 percent. The firm has a total debt ratio of 50 percent. What is the return on equity? A) 14.75 percent B) 15.22 percent C) 16.37 percent D) 13.88 percent E) 17.04 percent Answer: C) 16.37 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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Sophia's Auto Shop has sales of $920,500, total assets of $815,300, and a profit margin of 7.25 percent. The firm has a total debt ratio of 50 percent. What is the return on equity? A) 14.75 percent B) 15.22 percent C) 16.37 percent D) 13.88 percent E) 17.04 percent Answer: C) 16.37 percent
Transcribed Image Text:Sophia's Auto Shop has sales of $920,500, total assets of $815,300, and a profit margin of 7.25 percent. The firm has a total debt ratio of 50 percent. What is the return on equity? A) 14.75 percent B) 15.22 percent C) 16.37 percent D) 13.88 percent E) 17.04 percent Answer: C) 16.37 percent
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