What would the return-on-equity ratio be

Reference no: EM131947255

Gates Appliances has a return-on-assets (investment) ratio of 16 percent.

a. If the debt-to-total-assets ratio is 35 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.)

b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM131947255

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