Question

Based on the following information, what is the ROE? Total assets: 100 Debt: 40 Sales: 80...

Based on the following information, what is the ROE?

Total assets: 100

Debt: 40

Sales: 80

Net income: 10

Select one:

a. 25%

b. 15.2%

c. 16.7%

d. 14.8%

e. 20%

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Total assets=debt+equity

Hence equity=(100-40)=60

Hence ROE=Net income/equity

=(10/60)

which is equal to

=16.7%(Approx).

Add a comment
Know the answer?
Add Answer to:
Based on the following information, what is the ROE? Total assets: 100 Debt: 40 Sales: 80...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT