A firm has net income of $114,000,a return on assets of 12.6 percent,and a debt-equity ratio of 0.60.What is the return on equity?
A)17.11 percent
B)18.98 percent
C)20.16 percent
D)22.20 percent
E)24.60 percent

Name: A firm has net income of $114,000,a return on assets of 12.6 percent,and a debt-equity ratio of 0.60.What is the return on equity? A)17.11 percent B)18.98 percent C)20.16 percent D)22.20 percent E)24.60 percent
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Quizplus · Accepted Answer

Return on equity = 0.126 × (1 + 0.60) = 20.16 percent

A Firm Has Net Income of $114,000,a Return on Assets