What is debt ratio of corporation

Reference no: EM131931401

Question: ABC Corporation has sales of $5000, assets of $2,500, a debt ratio of 30 percent, and an ROE of 15 percent. XYZ Corporation has the same sales , assets, and net income, but its ROE is 25 percent. What is XYZ's debt ratio? (Hint: Begin by looking at the Du Pont equation or Balance Sheet). Please detail the answer so I can follow and understand the solution.

Reference no: EM131931401

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