What is the company's return on equity? The Rural Construction Co. has totalassets of $30 million and total liabilitiesof $10 million. The company has a profitmargin of 13.2% on sales of $50 million.What is the company's return onequity?

1. Calculate Net Income:Profit margin = Net income / SalesNet income = Profit margin * SalesNet…

Answered: The Rural Construction Co. has total…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What is the firm's ROA?

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The Rural Construction Co. has total assets of $30 million and total liabilities of $10 million. The company has a profit margin of 13.2% on sales of $50 million. What is the company's return on equity?