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    What is Meryl Corporation's return on total assets (ROA)?

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    The Meryl Corporation's common stock is currently selling at $100 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent, and a debt ratio of 60 percent, what is its return on total assets (ROA)?

    8.0%
    10.0%
    12.0%
    16.7%
    20.0%

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    https://brainmass.com/business/return-on-assets/meryl-corporations-return-total-assets-roa-28862

    Solution Preview

    a)
    P/E = 10 = $100/EPS
    EPS = $100/10 = $10.
    Earnings = NI = $10(100 ...

    Solution Summary

    This solution provides step-by-step calculations for ROE and then ROA.

    $2.49

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