Tessler Farms has a return on equity of 12.71 percent,a debt-equity ratio of 0.75,and a total asset turnover of 0.9.What is the return on assets?
A)7.26 percent
B)8.06 percent
C)13.67 percent
D)15.24 percent
E)17.41 percent

Name: Tessler Farms has a return on equity of 12.71 percent,a debt-equity ratio of 0.75,and a total asset turnover of 0.9.What is the return on assets? A)7.26 percent B)8.06 percent C)13.67 percent D)15.24 percent E)17.41 percent
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Quizplus · Accepted Answer

Return on assets = 0.1271/(1 + 0.75) = 7.26 percent

Tessler Farms Has a Return on Equity of 12