Tessler farms has a return on equity of 11.28 percent, a debt-equity ratio of 1.03, and a total asset turnover of. 87. what is the return on assets?

Return on equity = 11.28 percent = 11.28/100 = 0.1128

debt-equity ratio = 1.03

total asset turnover = 0.87

return on assets = ?

we can find return on assets by using the formula

= return on equity / (1 + debt equity ratio)

= 0.1128 / (1 + 1.03)

= 0.1128 / 2.03

= 0.0556 = 0.0556 x 100 = 5.56%

So, the return on assets is 5.56%