Cagliari company is 100 percent equity financed calculate


This is one of my practice quiz questions and I am having a hard time figuring out where to start and how to set up the problem, "Cagliari Company is 100 percent equity financed. The company in 2016 had earnings before taxes of $1,500, sales of $5,000, dividend payout ratio 60%, total assets turnover 2.0, and tax rate 30%. Given this information, please calculate Cagliari Company’s return on equity." Any help on how to set up the question to find the equity financed would be helpful.

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Financial Management: Cagliari company is 100 percent equity financed calculate
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