A firm has a return on equity of 15 The debt equity ratio is 50 The total asset turnover is 1 25 and the profit margin is 8 The total equity is $3,200 What is the amount of the net income a) $480 b) $500 c) $540 d) $600 e) $620 ...

a 480 Debt 050 Equity 0503200 ...

A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total asset

Question:

A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total is 1.25 and the profit margin is 8%. The total equity is $3,200. What is the amount of the net income?
a) $480
b) $500
c) $540
d) $600
e) $620
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.