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Ilme Remaining! 0:35.02 Hide/Show Time Remaining Part 1 of 2 - Question 1 of 5 2.0 Points Bobs Burgers has a return on asset
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Answer #1
Return on equity = Return on assets * equity multipler
8 = 6 *Equity multiplier
Equity multiplier = 1.333
Equity Multiplier = 1.3333
This implies,
Total assets = 1.3333
Total equity = 1.000
Debts = 0.3333
Debt to assets = Debts / Total assets
0.3333 / 1.3333 *100 = 25%
Answer is B. 25%
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