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kifflom [539]
3 years ago
13

A firm has a debt to asset ratio of 75%, $264,000 in debt, and net income of $49,280. calculate return on equity

Mathematics
1 answer:
svlad2 [7]3 years ago
3 0
Asset = 264,000 / 0.75 = $352,000
Shareholders equity = $352,000 - $264,000 = 88,000

Return on equity = 49,280 / 88,000 x 100% = 56%
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Hey there!


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