Debt Management Ratios Zoe's Dog Toys, Inc. reported a debt to equity ratio of 210 times...

Question

Question

business accounting

Answer 1

Answer #1

Assets financed with equity = Total Assets*Equity/Total Assets ratio

= 49,500,000*1/(1+2.10)

= $15,967,741.94

Total Assets = Debt/Debt ratio

= 13,800,000/43%

= $32,093,023.26

Equity = Total Assets - Debt

= $18,293,023.26

ROE = Net Income/Equity

= 680,000/18,293,023.26

= 3.72%

Answer 2

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