Reliable Cars has sales of $807,200,total assets of $1,105,100,and a profit margin of 9.68 percent.The firm has a total debt ratio of 78 percent.What is the return on equity?
A)13.09 percent
B)16.67 percent
C)17.68 percent
D)28.56 percent
E)32.14 percent

Question

Quizplus · Accepted Answer

Return on equity = (.0968 × $807,200)/[$1,105,100 × (1 - .78)] = 32.14 percent

Reliable Cars Has Sales of $807,200,total Assets of $1,105,100,and a Profit