In: Finance
Wood Recovery has sales of $397,000, total assets of $225,000, and total debt of $101,700 million. The net profit margin is 6.2 percent. What is the return on equity? Multiple Choice
19.96%
5.99%
32.20%
1.32%
ROE is 19.96% | |
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Statement showing Computations | |
Particulars | Amount |
Assets | 225,000.00 |
Debt | 101,700.00 |
Equity =225,000 - 101,700 | 123,300.00 |
Sales | 397,000.00 |
Profit =397,000*6.2% | 24,614.00 |
Return on equity =24,614/123,300 | 19.96% |
The right option is 19.96%.
The right option is 19.96%.