Need help with this accounting question You are given the following information about afirm:Return on assets (ROA) is 10 percent, and totalassets are $4,500,000. The firm's commonequity is $36 per share, and there are 100,000shares of common stock outstanding.What is the return on equity (ROE)?a. 15.0%b. 14.0%c. 13.5%d. 12.5%e. 2.5%

Step 1:We can calculate net income with the help of return on asset formula. Return on asset= net…

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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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