Answered: Timberwork's Inc. has a return on…

Timberwork's Inc. has a return on assets (ROA) of 7.2%, a total asset turnover rate of 2.0, and a debt- equity ratio of 1.8. What is the return on equity (ROE)?

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 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...

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Question

What is the return on equity of this financial accounting question?

Timberwork's Inc. has a return on assets (ROA) of
7.2%, a total asset turnover rate of 2.0, and a debt-
equity ratio of 1.8. What is the return on equity
(ROE)?

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