Ask Experts Questions for FREE Help !
Ask
    cornelius12's Avatar
    cornelius12 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 17, 2008, 06:32 PM
    Return on Equity
    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's Avatar
    wingrun Posts: 40, Reputation: 4
    Junior Member
    		  
    #2

    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
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Return on Assets & Return on Equity [ 1 Answers ]

Question... Lily Cosmetics has annual sales of $500,000,000. They maintain a net after tax profit margin of 5% and they have a sales-to-assets ratio of 4. A) What is the Return on assets? B) If the debt/equity ratio is 0.5, what is the Return on Equity?

View more questions Search