XYZ SA has been a return on equity of 20%. A net profit margin of 6% and debt to equity ratio of 1. What is XYZ's return on assets? a. 5.0% b. 10.0% c. 15.0% d. 20.5%

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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XYZ SA has been a return on equity of 20%. A net profit
margin of 6% and debt to equity ratio of 1. What is XYZ's
return on assets?
a. 5.0%
b. 10.0%
c. 15.0%
d. 20.5%
Transcribed Image Text:XYZ SA has been a return on equity of 20%. A net profit margin of 6% and debt to equity ratio of 1. What is XYZ's return on assets? a. 5.0% b. 10.0% c. 15.0% d. 20.5%
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