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21 June, 03:14

A firm has net income of $197,400, a return on assets of 8.4 percent, and a debt-equity ratio of. 72. What is the return on equity?

a. 11.67 percent

b. 18.98 percent

c. 14.45 percent

d. 16.22 percent

e. 15.06 percent

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Answers (1)
  1. 21 June, 03:29
    0
    C 14.45

    Explanation:

    Return on equity =.084 * (1 +.72) =.1445, or 14.45 percent
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