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Tanner's Formal Wear has a debt-equity ratio of 75 percent, sales of $980,000, net income of $45,250, and total debt of $210,000. What is the return on equity (ROE)? a) 16.16 percent b) 14.90 percent c) 19.30 percent d) 8.42 percent

Tanner's Formal Wear has a debt-equity ratio of 75 percent, sales of $980,000, net income of $45,250, and total debt of $210,000. What is the return on equity (ROE)? a) 16.16 percent b) 14.90 percent c) 19.30 percent d) 8.42 percent

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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Tanner's Formal Wear has a debt-equity ratio of 75 percent, sales of $980,000, net income of $45,250, and total debt of $210,000. What is the return on equity (ROE)? a) 16.16 percent b) 14.90 percent c) 19.30 percent d) 8.42 percent
Transcribed Image Text:Tanner's Formal Wear has a debt-equity ratio of 75 percent, sales of $980,000, net income of $45,250, and total debt of $210,000. What is the return on equity (ROE)? a) 16.16 percent b) 14.90 percent c) 19.30 percent d) 8.42 percent
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