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svet-max [94.6K]
3 years ago
8

A firm has net income of $197,400, a return on assets of 8.4 percent, and a debt-equity ratio of .72. What is the return on equi

ty?
a. 11.67 percent
b. 18.98 percent
c. 14.45 percent
d. 16.22 percent
e. 15.06 percent
Business
1 answer:
Karolina [17]3 years ago
8 0

Answer:

C 14.45

Explanation:

Return on equity = .084 ×(1 + .72) = .1445, or 14.45 percent

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