Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Lighting Store has sales of $364,000, depreciation of $28,000, and taxable income of $58,000. The capital intensity ratio is 1.2, the debt-equity ratio is

image text in transcribed
image text in transcribed
The Lighting Store has sales of $364,000, depreciation of $28,000, and taxable income of $58,000. The capital intensity ratio is 1.2, the debt-equity ratio is 0.45, and the tax rate is 34 percent. What is the return on assets? a. 6.53 percent b. 7.21 percent c. 7.79 percent d. 8.76 percent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Financial Accounting Information For Decisions

Authors: Robert w Ingram, Thomas L Albright

6th Edition

9780324313413, 324672705, 324313411, 978-0324672701

Students also viewed these Accounting questions

Question

discuss ways of measuring sickness absence and sickness presence;

Answered: 1 week ago