The Return on Sales (ROS) of Mini Corp is 5%. Mini's debt ratio (Debt to Assets) is 0.6 and Asset Turnover (Sales to Assets) is 3.2x. What is Mini's Return on Equity (ROE)? a) 26.7% b) 3.9% c) 40.0% d) 9.6% e) none of the above

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 8P
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The Return on Sales (ROS) of Mini Corp is 5%.
Mini's debt ratio (Debt to Assets) is 0.6 and
Asset Turnover (Sales to Assets) is 3.2x. What
is Mini's Return on Equity (ROE)?
a) 26.7%
b) 3.9%
c) 40.0%
d) 9.6%
e) none of the above
Transcribed Image Text:The Return on Sales (ROS) of Mini Corp is 5%. Mini's debt ratio (Debt to Assets) is 0.6 and Asset Turnover (Sales to Assets) is 3.2x. What is Mini's Return on Equity (ROE)? a) 26.7% b) 3.9% c) 40.0% d) 9.6% e) none of the above
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