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#1
Sep 9 2013 03:36am
any ideas?

Martinez, Inc., has a total debt ratio of .65, total debt of $345,000, and net income of $31,280.

find ROE
ROE formula = Net Income/SHE

i dont know how to find net income with given information
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#2
Sep 9 2013 06:50am
345 000 debt = 65%
then 345 000 / 0,65 = 530 769 is the total asset
of which 530 769 - 345 000 = 185 769 must be equity

ROE = net income / equity
-->
31 280/185 769 = 0,16838 = 16,84 %
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#3
Sep 9 2013 06:55am
Quote (Simens @ Sep 9 2013 07:50am)
345 000 debt = 65%
then 345 000 / 0,65 = 530 769 is the total asset
of which 530 769 - 345 000 = 185 769 must be equity

ROE = net income / equity
-->
31 280/185 769 = 0,16838 = 16,84 %


yours is close to the correct answer, i got 16.87 eventually... this shit is rocking me hard lol
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#4
Sep 9 2013 03:15pm
Quote (Astroglide420 @ Sep 9 2013 04:36am)
any ideas?

Martinez, Inc., has a total debt ratio of .65, total debt of $345,000, and net income of $31,280.

find ROE
ROE formula = Net Income/SHE

i dont know how to find net income with given information


see bolded
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#5
Sep 9 2013 03:21pm
Quote (TritonV8 @ Sep 9 2013 02:15pm)
see bolded


:rofl:
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#6
Sep 9 2013 10:16pm
Quote (TritonV8 @ Sep 9 2013 04:15pm)
see bolded


you know what i meant, sigh

ill thank the other guy for help
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