Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Last year ABC Corp. had sales of $525,000 and a net income of $12,600, and its year-end assets were $100,000. The firm's total-liabilities-to-total-assets ratio was

Last year ABC Corp. had sales of $525,000 and a net income of $12,600, and its year-end assets were $100,000. The firm's total-liabilities-to-total-assets ratio was 50.00%. Based on the DuPont equation, what was ABC's ROE? Show your answer in this format: 12.34%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the return on equity ROE using the DuPont equation we need to multiply three components ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing a risk based approach to conducting a quality audit

Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg

9th edition

9781133939160, 1133939155, 1133939163, 978-1133939153

More Books

Students also viewed these Finance questions

Question

What factors need to be considered when interpreting ratios?

Answered: 1 week ago

Question

Draw a labelled diagram of the Dicot stem.

Answered: 1 week ago

Question

Express the following ratios in its lowest terms.

Answered: 1 week ago

Question

Express the following ratios in its lowest terms.

Answered: 1 week ago