Plug 8 for y
8 = 2x + 4
Subtract 4
4 = 2x
Divide by 2
x = 2
Plug 16 for y
16 = 2x + 4
Subtract by 4
12 = 2x
Divide by 2
x = 6
Substitute 20 for y
20 = 2x + 4
16 = 2x
x = 8
Substitute 22 for y
22 = 2x + 4
18 = 2x
9 = x
So the values are 2, 6, 8, 9
The return on equity for the firm is 18.75%.
<h3>Return on equity</h3>
Return on equity=Return on assets +[ (Debt/Equity ratio)×(Return on assets-Return on debt)]
Let plug in the formula
Return on equity=.15+ [(.75)× (.15-.10)]
Return on assets=.15+ (.75×0.05)
Return on assets=.15+0.0375
Return on equity=0.1875×100
Return on equity=18.75%
Therefore the return on equity ratio is 18.75%.
Learn more about return on equity here:
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