What was the firms return on common equity
Problem
U KNO, Inc. uses only debt and common equity funds to finance its assets. This past year the firm's return on total assets was 16%. The firm financed 31% percent of its assets using debt. What was the firm's return on common equity?
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This past year the firm's return on total assets was 16%. The firm financed 31% percent of its assets using debt. What was the firm's return on common equity?
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