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cornelius12
Jul 17, 2008, 06:32 PM
If a firm has a debt to equity ratio of 50%, debt of $300,000, and net income of $90,000. What is the return on equity?
wingrun
Jul 17, 2008, 07:04 PM
return on equity formula is

ROE = NET INCOME / EQUITY

plug the numbers where they belong and there you have it