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mitchel. Inc. has a debt ratio of 33 percent and ROA = - 27 percent. Compute Mitchel's Return
on Equity (ROE). (Record your answer as a percent rounded to one decimal place But do not
include the percent sign in your answer. Thus, record.32184 -32.1% as 32.1).
Solution
ROE = ROA*1/(1-Debt ratio)
ROE=0.27*1/(1-0.33)= 40.3

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mitchel. Inc. has a debt ratio of 33 percent and ROA = - 27 percent. .pdf

  • 1. mitchel. Inc. has a debt ratio of 33 percent and ROA = - 27 percent. Compute Mitchel's Return on Equity (ROE). (Record your answer as a percent rounded to one decimal place But do not include the percent sign in your answer. Thus, record.32184 -32.1% as 32.1). Solution ROE = ROA*1/(1-Debt ratio) ROE=0.27*1/(1-0.33)= 40.3