Accounting A firm has a debt-equity ratio of 50%, debt of $300,000, andnet income of $90,000. The return on equity:A. 60%B. 15%C. 30%D. not enough information

Step 1: Define Return on Equity RatioIn the parlance of finance, there are various financial ratios…

Answered: A firm has a debt-equity ratio of 50%,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A firm has a debt-equity ratio of 50%, debt of $300,000, and net income of $90,000. The return on equity: A. 60% B. 15% C. 30% D. not enough information