EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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What is the return on equity on these general accounting question?

Mountain View Motors has sales of $5,000,000, total assets
of $4,500,000, and a profit margin of 6 percent. The firm
has a total debt ratio of 50 percent.
What is the return on equity (ROE)?
a. 9.50 percent
b. 8.00 percent
c. 12.00 percent
d. 13.33 percent
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Transcribed Image Text:Mountain View Motors has sales of $5,000,000, total assets of $4,500,000, and a profit margin of 6 percent. The firm has a total debt ratio of 50 percent. What is the return on equity (ROE)? a. 9.50 percent b. 8.00 percent c. 12.00 percent d. 13.33 percent
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