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Los Pollos Hermanos Restaurants Inc. Selected Financial Ratios Last Year Next Year ROE 12.21% 12.21% 1 + D/E 1.45 ROA 8.42% Total Asset 1.17 1.30

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Los Pollos Hermanos Restaurants Inc. Selected Financial Ratios Last Year Next Year ROE 12.21% 12.21% 1 + D/E 1.45 ROA 8.42% Total Asset 1.17 1.30 Turnover Net profit 7.2% 6.70% Margin The table, above, provides ratios for Los Pollos Hermanos Restaurants Inc. If Los Pollos wants the same ROE next year as last year, then what D/E ratio should it have next year? 0.40 0.42 0.44 0.46

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