Find the best answers to your questions with the help of IDNLearn.com's expert contributors. Receive prompt and accurate responses to your questions from our community of knowledgeable professionals ready to assist you at any time.
Sagot :
The return on equity for the firm is 18.75%.
Return on equity
Return on equity=Return on assets +[ (Debt/Equity ratio)×(Return on assets-Return on debt)]
Let plug in the formula
Return on equity=.15+ [(.75)× (.15-.10)]
Return on assets=.15+ (.75×0.05)
Return on assets=.15+0.0375
Return on equity=0.1875×100
Return on equity=18.75%
Therefore the return on equity ratio is 18.75%.
Learn more about return on equity here:
https://brainly.com/question/5537849
#SPJ1
We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com. We’re here to provide reliable answers, so please visit us again for more solutions.