A Firm with a Debt-Equity Ratio of 1/2,return on Assets

question 14

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:

• A) 15.00%.
• B) 16.67%.
• C) 20.00%.
• D) 21.17%.

---

Definitions:

Accurate

Free from errors or discrepancies; precise and correct in all details.

Percent

A fraction or ratio expressed as a part of 100.

Increased By

A term indicating that a specific value has been added to an original amount, resulting in a larger sum.

Amount

The total sum of money, quantities, or values in question.