Question: can someone explain the calculation behind ROA i dont quit get it, you can skip ROE, thanks in advance You are an investor of Pepper

can someone explain the calculation behind ROA i dont quit get it, you can skip ROE, thanks in advance
can someone explain the calculation behind ROA i dont quit get it,

You are an investor of Pepper Corp who recently released their annual report. From the income statement you can see that the company has achieved a net income of EUR 0.61 million. The book value of equity is EUR 6.17 millioni. The company's Debt-Equity Ratio is 0.37. The current interest rate for debt payments is 4.00%. Compute both the ROA (Return on Asset) and ROE (Return on Equity) and express them in Percentages. Select one: a. 8.28%;11.35% b. 7.69%;9.89% C 7.22%;9.89% d. 8.28%;9.89% True. e. 3.06%;9.89% a. False. b. False. c. False. d. False. e. True. The correct answer is: 8.28%;9.89%

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