In: Finance
Isolation Company has debt-equity ratio of 0.7. Return on Assets is 9% and total equity is 511,312. What is the Net Income
Required:
0.7 = Total liabilities / 511,312
Total liabilities = 511,312 * 0.7
Total liabilities = 357,918
= $357,918 + 511,312
= 869,230
0.09 = Net income / 869,230
Net income = 0.09 * 869,230
Net income = 78,231.
Thus, net income = 78,231.