Question:Samuelson's has a debt-equity ratio of 45percent, sales of $11,000, net income of $2,300,and total debt of $11,700. What is the return onequity?a. 4.50 percent.b. 20.91 percent.c. 8.85 percent.d. 19.66 percent.e. 6.10 percent.

Given,Debut- equity ratio d/e = .45Total debut d = 11700So, 11700/e = .45 e = 11700/.45 =…

Answered: Question: Samuelson's has a debt-equity…

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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Question: Samuelson's has a debt-equity ratio of 45 percent, sales of $11,000, net income of $2,300, and total debt of $11,700. What is the return on equity? a. 4.50 percent. b. 20.91 percent. c. 8.85 percent. d. 19.66 percent. e. 6.10 percent.