The return-on-equity if the return on assets ratio is 8% and the debt-to-asset ratio is 40%. Introduction: Return on equity : It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

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Answer 1

Question

Chapter 3, Problem 14P

a.

Summary Introduction

To calculate: The return-on-equity if the return on assets ratio is 8% and the debt-to-asset ratio is 40%.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

b.

Summary Introduction

To determine: The return-on-equity if the return on assets ratio is 8% and the firm has no debt.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

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Students have asked these similar questions

Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decima) places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)

A firm has a return on assets of 7.8 percent and a cost of equity of 11.9 percent. What is the pretax cost of debt if the debt–equity ratio is .72? Ignore taxes.

What is the cost of equity for a firm where the required return on assets is 15.71%, the cost of debt is 6.92%, and the target debt/equity ratio is 1.19? Ignore taxes. O A) 19.05%

Answer 2

Question

Chapter 3, Problem 14P

a.

Summary Introduction

To calculate: The return-on-equity if the return on assets ratio is 8% and the debt-to-asset ratio is 40%.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

b.

Summary Introduction

To determine: The return-on-equity if the return on assets ratio is 8% and the firm has no debt.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

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Answer 3

Question

Chapter 3, Problem 14P

a.

Summary Introduction

To calculate: The return-on-equity if the return on assets ratio is 8% and the debt-to-asset ratio is 40%.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

b.

Summary Introduction

To determine: The return-on-equity if the return on assets ratio is 8% and the firm has no debt.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

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Answer 4

Question

Chapter 3, Problem 14P

a.

Summary Introduction

To calculate: The return-on-equity if the return on assets ratio is 8% and the debt-to-asset ratio is 40%.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

b.

Summary Introduction

To determine: The return-on-equity if the return on assets ratio is 8% and the firm has no debt.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

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Answer 5

Chapter 3, Problem 14P

a.

Summary Introduction

To calculate: The return-on-equity if the return on assets ratio is 8% and the debt-to-asset ratio is 40%.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

b.

Summary Introduction

To determine: The return-on-equity if the return on assets ratio is 8% and the firm has no debt.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

Answer 6

Chapter 3, Problem 14P

a.

Summary Introduction

To calculate: The return-on-equity if the return on assets ratio is 8% and the debt-to-asset ratio is 40%.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

Answer 7

Chapter 3, Problem 14P

a.

Summary Introduction

To calculate: The return-on-equity if the return on assets ratio is 8% and the debt-to-asset ratio is 40%.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

Answer 8

b.

Summary Introduction

To determine: The return-on-equity if the return on assets ratio is 8% and the firm has no debt.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

Answer 9

b.

Summary Introduction

To determine: The return-on-equity if the return on assets ratio is 8% and the firm has no debt.

Introduction:

Return on equity:

It represents the financial performance of a firm by dividing the net income with shareholdersâ€™ equity. It is a ratio that helps the company measure its profitability with respect to its equity.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Solution Summary: The author explains the return-on-equity, which represents the financial performance of a firm by dividing the net income with shareholders' equity.

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