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A Firm with a Debt Equity Ratio of 1/2, Return

question 102

Multiple Choice

A firm with a debt equity ratio of 1/2, return on assets of 15%, and return on debt of 10% will have return on equity of:


Definitions:

Debits

Accounting entries that increase assets or expense accounts, or decrease liability, equity, or revenue accounts.

Credits

Accounting entries that increase liabilities or equity accounts, or decrease asset accounts.

Personal Equipment

Tangible items owned by an individual for personal use, not for business or commercial purposes.

Cash

Currency and other liquid instruments such as checks and bank deposits that are readily available for use in transactions and other immediate needs.

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