Return on Equity: In the latest year, Photon, Inc. reported $276,000 in net income. The firm maintains a debt ratio of 30% and has total assets of $3,000,000. What is Photon's return on equity? (Round off to the nearest 0.1%)

Question

Quizplus · Accepted Answer

Return on equity = Net income / (Total assets - Total debt)= 276,000 / (3,000,000 - 0.3 * 3,000,000)= 276,000 / 2,100,000= 13.1%

Return on Equity: in the Latest Year, Photon, Inc