Tessler Farms has a return on equity of 11.28 percent, a debt-equity ratio of 1.03, and a total asset turnover of .87.What is the return on assets?
A)5.56 percent
B)8.06 percent
C)13.67 percent
D)15.24 percent
E)17.41 percent

Question

Quizplus · Accepted Answer

The return on assets is calculated as the return on equity divided by the debt-equity ratio multiplied by the total asset turnover. In this case, the return on assets is 11.28% / 1.03 * .87 = 8.06%.

Tessler Farms Has a Return on Equity of 11