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What would the return on equity be

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Reference no: EM132684050

An appliances company generated a sales revenue of $20,000,000 and net income of $900,000 in the past fiscal year. Its total assets are $8,000,000, and stockholders' equity is $4,000,000.

Problem a. What is the net profit margin?

Problem b. What is the return on assets (ROA)?

Problem c. What is the return on equity (ROE)?

Problem d. The total debt ratio is currently 50%. If the net income and total assets stay the same, but the total debt ratio increases to 60%, what would the return on equity be?

Reference no: EM132684050

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