Purchase Solution

Return on Equity

Not what you're looking for?

Ask Custom Question

A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and total liablilities of $750,000 has a return on equity of ________.

20 percent, 15 percent, 3 percent, or 4 percent

please advise answer & why - thanks!

Purchase this Solution
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • Capital Structure and Leverage for a Locomotive Corporation

    Expected return on the equity of an otherwise identical all-equity firm = return on assets = 14.29% since there is no debt, Expected return on assets = Proportion of equity x Return on equity + Proportion of debt x Return on debt

  • Return on equity

    ) = Return on assets * Equity multiplier Where Net income / Total assets = Return on assets Total assets / Total equity = Equity multiplier Return on equity = 8%*1.4 = 11.2% Thank you Solution shows calculation of Return on equity.

  • Definition of Return on Equity

    Return on Equity is calculated by dividing $ 60,000 by $ 300,000 (average shareholders equity which is $ 315,000 + $ 285,000 / 2). This gives us a Return on Equity of 20%.

  • Return on Common Equity vs Total Assets

    142419 Return on Common Equity vs Total Assets Would you anticipate that a firm's Return on Common Equity would be smaller or larger than that same firm's Return on Total Assets?

  • Calculate Afton's return on assets and return on equity

    assets and return on equity.

  • Lily Cosmetics

    = 1.5 Equity Equity = Assets/1.5 = 125/1.5 = 83.33 Return on Equity = 25/83.33 = 30% The solution explains the calculation of return on assets and debt/equity ratio for Lily Cosmetics

  • Return on Equity Using Du Pont Analysis

    Return on equity =( Net Income /Sales) x (Sales / Assets ) x (Assets / Equity) Or Return on equity =Profit margin x Total asset turnover x Leverage Or Return on equity =5.5% x 2 x 2.2= 0.242 or 24.2% Answer: Return on equity=

  • Difference in return on equity for two companies

    Return on Equity = Net Income/Total Equity Barden has a Return on Equity of 11.1%. The Total Equity of Barden=Net Income/Return on Equity = 1/0.111 = $9 million. On the liabilities side, Barden has $1 million in debt and $9 million in equity.

  • Thomas Lane Company: calculate return on equity and return on equity ratio

    = 0.12 The expert calculate the return on equity and return on equity ratios.

  • Global Financial Management

    - Return on Equity vs.

View More Related Solutions