Trellis Furniture Company has a debt to equity ratio of 40%, total debt of $400,000, and net income of $80,000. The return on equity is: a. 8% b. 10% c. 15% d. 11% e. None of the above
Trellis Furniture Company has a debt to equity ratio of 40%, total debt of $400,000, and net income of $80,000. The return on equity is: a. 8% b. 10% c. 15% d. 11% e. None of the above
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
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Question
What is the return on equity of this financial accounting question?

Transcribed Image Text:Trellis Furniture Company has a debt to equity ratio of 40%,
total debt of $400,000, and net income of $80,000.
The return on equity is:
a. 8%
b. 10%
c. 15%
d. 11%
e. None of the above
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