Gates Appliances has a return-on-assets (investment) ratio of 24 percent. a. If the debt-to-total-assets ratio is 35 percent, what is the return on equity? (Input
| Gates Appliances has a return-on-assets (investment) ratio of 24 percent. |
| a. | If the debt-to-total-assets ratio is 35 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) |
| Return on equity | % |
| 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.) |
| Return on equity | % |
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Authors: Francis O'Gorman
1st Edition
0199281920, 978-0199281923
