Gates Appliances has a return-on-assets (investment) ratio of 14 percent. a. If the debt-to-total-assets ratio is...

 

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Gates Appliances has a return-on-assets (investment) ratio of 14 percent. a. If the debt-to-total-assets ratio is 45 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) Return on equity % 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.) Return on equity % Gates Appliances has a return-on-assets (investment) ratio of 14 percent. a. If the debt-to-total-assets ratio is 45 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) Return on equity % 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.) Return on equity %

Answer rating: 100% (QA)

To calculate the return on equity ROE we need to use the return on asset... View the full answer