Question

a firm has total revenues of $187,500, net income of $15,000, total current liablities of $50,000, total common equity of $75,000, and total assets of $150,000. what is the firm's roe?

Answer 1

Step-by-step explanation:

roe= net income / equity

net income = 15000

equity = 75000

roe= 15000/75000= 20%