Profitability Ratios DJ's Soda Fountain Has Asked You to Help

question 26

Multiple Choice

Profitability Ratios DJ's Soda Fountain has asked you to help piece together financial information on the firm for the most current year. Managers give you the following information: sales = $20 million, total debt = $3 million, debt ratio = 75%, ROE = 27%. Using this information, what is DJ's ROA?

• A) .0675%
• B) 6.75%
• C) 25.00%
• D) 27.00%

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