Mike's Place has total assets of $123,800,a debt-equity ratio of 0.75,and net income of $7,100.What is the return on equity?
A)3.48 percent
B)3.73 percent
C)5.74 percent
D)10.04 percent
E)13.61 percent

Name: Mike's Place has total assets of $123,800,a debt-equity ratio of 0.75,and net income of $7,100.What is the return on equity? A)3.48 percent B)3.73 percent C)5.74 percent D)10.04 percent E)13.61 percent
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Question

Quizplus · Accepted Answer

Return on equity = ($7,100/$123,800) × (1 + 0.75) = 10.04 percent

Mike's Place Has Total Assets of $123,800,a Debt-Equity Ratio of 0.75,and