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Timber Co has sales of $5,000, total assets of $4,000, and a profit margin of 6 percent. The firm has a total debt ratio of 30 percent. What is the return on equity? A. 12 percent B. 10 percent C. 15 percent D. 18 percent E. 8 percent

Timber Co has sales of $5,000, total assets of $4,000, and a profit margin of 6 percent. The firm has a total debt ratio of 30 percent. What is the return on equity? A. 12 percent B. 10 percent C. 15 percent D. 18 percent E. 8 percent

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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What is the return on equity?

Timber Co has sales of $5,000, total assets of $4,000, and a profit margin of 6 percent. The firm has a total debt ratio of 30 percent. What is the return on equity? A. 12 percent B. 10 percent C. 15 percent D. 18 percent E. 8 percent
Transcribed Image Text:Timber Co has sales of $5,000, total assets of $4,000, and a profit margin of 6 percent. The firm has a total debt ratio of 30 percent. What is the return on equity? A. 12 percent B. 10 percent C. 15 percent D. 18 percent E. 8 percent
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