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A local appliances company generated a sales revenue of $15,000,000 and net income of $800,000 in the past fiscal year. Its total assets are $11,500,000,
A local appliances company generated a sales revenue of $15,000,000 and net income of $800,000 in the past fiscal year. Its total assets are $11,500,000, and stockholders' equity is $3,500,000.
c. What is the return on equity (ROE)? d. The total debt ratio is currently 69.57%. If the net income and total assets stay the same, but new shares are issued to pay off the debt, and the total debt ratio decreases to 50%, what would the return on equity be now?
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