Quick practice
Question 1 of 5
The following data pertains to a company's common-size financial statements.
Current assets 40%
Total debt 40%
Net income 16%
Total assets $2,000
Sales $1,500
Total asset turnover ratio 0.75
The firm has no preferred stock in its capital structure.
The company's after-tax return on common equity is closest to
A
15%
B
20%
C
25%
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