The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent, and a debt ratio of 60 percent, what is the return on total assets (ROA)?a. 8.0%b. 10.0%с 12.0% 16°10 do The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/Eratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent,and a debt ratio of 60 percent, what is the return on total assets (ROA)?8.0%10.0%a.12.0%b.C.16.7% do20.00% e.6

P/E Ratio =10ROE =20%Debt ratio=60%stock price= $100no. of shares=100ROA=?

Answered: The Meryl Corporation's common stock…

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

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The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent, and a debt ratio of 60 percent, what is the return on total assets (ROA)?

a. 8.0%

b. 10.0%

с 12.0% 16°10 do

The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/E
ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent,
and a debt ratio of 60 percent, what is the return on total assets (ROA)?
8.0%
10.0%
a.
12.0%
b.
C.
16.7% do
20.00% e.
6

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