What is the return on equity of this financial accounting question? Sterling Apparel has a debt ratio of 45%, sales of$900,000, net income of $50,000, and total debt of$225,000. Calculate the Return on Equity (ROE).

Step 1: Calculate Total AssetsWe know the debt ratio and total debt, so we can use the debt ratio…

Answered: Sterling Apparel has a debt ratio of…

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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Sterling Apparel has a debt ratio of 45%, sales of $900,000, net income of $50,000, and total debt of $225,000. Calculate the Return on Equity (ROE).