Answered

At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Lee Sun's has sales of $3,300, total assets of $3,000, and a profit margin of 6 percent. The firm has a total debt ratio of 42 percent. What is the return on equity

Sagot :

The return on equity  is 11.37%.

What does an equity means?

  • The value that would be restored to a company's shareholders if all of its assets were sold and all of its obligations were settled is known as equity.
  • We can also think of equity as the amount of ownership that remains in a company or asset after all debts related to that asset have been paid off.

Net income = $3,300 x 0.06 = $198

Total debt ratio = 0.42 = ($3,000 - total equity)/$3,000

Total equity = $1740

Return on equity = $198/$1740

                              = 0.1137 or 11.37%

Learn more about equity brainly.com/question/2254380

#SPJ4

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.