Question
Suppose that Acme Inc. had a net income of $20,000 on sales of $325,000 and total assets are $250,000 at the end of the fiscal
Suppose that Acme Inc. had a net income of $20,000 on sales of $325,000 and total assets
are $250,000 at the end of the fiscal year. The firm's debt to assets ratio was 0.45. What is
the return on equity? (hint: use the DuPont relationship and change debt/asset to equity/assets
and finally to assets/equity)
| 13.82% | ||
| 14.55% | ||
| 15.23% | ||
| 16.00% | ||
| 16.80% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Finance And Financial Markets
Authors: Keith Pilbeam
3rd Edition
023023321X, 978-0230233218
