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Velocity Motors has sales of $5,500, total assets of $4,500, and a profit margin of 6 percent. The firm has a total debt ratio of 38 percent. What is the return on equity (ROE)?

Velocity Motors has sales of $5,500, total assets of $4,500, and a profit margin of 6 percent. The firm has a total debt ratio of 38 percent. What is the return on equity (ROE)?

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 of this financial accounting question?

Velocity Motors has sales of $5,500, total assets of $4,500, and a profit margin of 6 percent. The firm has a total debt ratio of 38 percent. What is the return on equity (ROE)?
Transcribed Image Text:Velocity Motors has sales of $5,500, total assets of $4,500, and a profit margin of 6 percent. The firm has a total debt ratio of 38 percent. What is the return on equity (ROE)?
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