Problem:
Samuelson's has a debt-equity ratio of 45 percent, sales of $11,000, net income of $2,300, and total debt of $11,700. What is the return on equity?
- 4.50 percent
- 20.91 percent
- 8.85 percent
- 19.66 percent
- 6.10 percent
Note: Explain all calculation and formulas.