Answer:
13.14%
Explanation:
Debt / Total assets = 0.30
=>Debt = 0.30 * $3,000,000
Debt = $900,000
=> Equity = Total assets - Debt
Equity = $3,000,000 - $900,000
Equity = $2,100,000
Return on equity = Net income / Equity * 100
Return on equity = $276,000 / $2,100,000 * 100
Return on equity = 0.13142857 * 100
Return on equity = 13.142857%
Return on equity = 13.14%
