Question: Moogle, Inc. is in the same business as Google, Inc., but has recently retired all its debt to become an all-equity firm. Its return on

Moogle, Inc. is in the same business as Google, Inc., but has recently retired all its debt to become an all-equity firm. Its return on equity has dropped from 12.00% to 10.75% as a result of this. Google, Inc. continues to have debt in its capital structure, and its debt-to-equity ratio is 30.00%. What is the percentage return on assets of Google, Inc.? (Allow two decimals in the percentage but do not enter the % sign.)

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SOLUTION We can use the DuPont identity to calculate the return on assets ROA of Google Inc ROA Net Income Total Assets ROA Net Income Sales x Sales T... View full answer

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