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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?

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?

Intermediate Financial Management (MindTap Course List)
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 6P
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What is the return on equity?

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?
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?
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