year Vaughn Corphad sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000 The firm's total-debt-to-total-assets ratio was 42.5% Based on the Du Pont equation, what was Vaughn's ROE?
A) 14.77%
B) 15.51%
C) 16.28%
D) 17.10%
E) 17.95%

Question

Quizplus · Accepted Answer

ROE = Net Income / Sales * Sales / Assets * Assets / Equity= 17,832 / 315,000 * 315,000 / 210,000 * 210,000 / (210,000 * 0.575)= 17,832 / 210,000 * 1 / 0.575= 14.77%

Year Vaughn Corphad Sales of $315,000 and a Net Income