Find the ROA (return on assets) when sales is $510,400, total equity is $250,000, profit margin is 8%, and debt-equity ratio is .60
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Find the ROA (return on assets) when sales is $510,400, total equity is $250,000, profit margin is 8%, and debt-equity ratio is .60
Step by step...
From the given Debt / Equity ratio, and the given amount of Equity, find Debt.
Then, Debt + Equity = Total Assets
From the given Sales and Profit Margin values, find Net Profit.
Finally, ROA = Net Profit / Total Assets
That's the recipe and all the necessary ingredients.
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