Supra's has sales of $893,000,total assets of $932,500,a profit margin of 6.5 percent,and a total debt ratio of 40 percent.What is the return on equity?
A)15.56%
B)10.37%
C)8.71%
D)6.22%
E)11.49%

Name: Supra's has sales of $893,000,total assets of $932,500,a profit margin of 6.5 percent,and a total debt ratio of 40 percent.What is the return on equity? A)15.56% B)10.37% C)8.71% D)6.22% E)11.49%
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Question

Quizplus · Accepted Answer

Return on equity = (.065 × $893,000)/[$932,500 × (1 - .40)] = .1038,or 10.37%

Supra's Has Sales of $893,000,total Assets of $932,500,a Profit Margin