Last year Atlantic Richfield had sales of $325000 Net income of $27200 The firm finances using only debt and common equity and total assets equal total invested capital. Year ended assets $250000 Debt ration was 15% What was their
Last year Atlantic Richfield had sales of $325000 Net income of $27200 The firm finances using only debt and common equity and total assets equal total invested capital. Year ended assets $250000 Debt ration was 15% What was their
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Last year Atlantic Richfield had sales of $325000
Net income of $27200
The firm finances using only debt and common equity and total assets equal total invested capital.
Year ended assets $250000
Debt ration was 15%
What was their roe?
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