Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,700. The firm finances using only debt and common equity, and total assets equal total invested capital. Year-end assets were $250,000, and the firm's debt ratio (total-debt-to-total-capital ratio) was 15%. What was their ROE? Your answer should be between 7.12 and 15.40, rounded to 2 decimal places, with no special characters.

Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,700. The firm finances using only debt and common equity, and total assets equal total invested capital. Year-end assets were $250,000, and the firm's debt ratio (total-debt-to-total-capital ratio) was 15%. What was their ROE? Your answer should be between 7.12 and 15.40, rounded to 2 decimal places, with no special characters.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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