Problem:
Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 42.5%. Based on the Du Pont equation, what was Vaughn's ROE?
Answer
A. 14.77%
B. 15.51%
C. 16.28%
D. 17.10%
E. 17.95%
Note: Please provide equation and explain comprehensively and give step by step solution.