Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
Bartleby Related Questions Icon

Related questions

Question

need help about this general account question

Suppose that Acme Inc. had a net income of $20,000
on sales of $325,000 and total assets are $240,000 at
the end of the fiscal year. The firm's debt to assets
ratio was 45.0%. What is the return on equity? (Hint:
use the DuPont relationship and change debt/assets
to equity/assets, and finally to assets/equity)
A. 13.82%
B. 14.47%
C. 15.15%
D. 15.86%
E. 15.27%
expand button
Transcribed Image Text:Suppose that Acme Inc. had a net income of $20,000 on sales of $325,000 and total assets are $240,000 at the end of the fiscal year. The firm's debt to assets ratio was 45.0%. What is the return on equity? (Hint: use the DuPont relationship and change debt/assets to equity/assets, and finally to assets/equity) A. 13.82% B. 14.47% C. 15.15% D. 15.86% E. 15.27%
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Text book image
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT