EBK CFIN
6th Edition
ISBN: 9781337671743
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 2, Problem 18PROB
Summary Introduction
FDS’s total assets are $100,000,
Return on assets is used to measure how much the firm profitable with related to firm’s total assets.
Return on equity is used to measure the financial performance that the owners of common stock of a company receive on their shareholdings.
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Nakamura, Incorporated, has a total debt ratio of .57, total debt of $317,000, and net income of $38,750. What is the company’s return on equity?
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