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).

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
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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).
Transcribed Image Text: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).
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