Return on stockholders equity


Problem:

Fondren Machine Tools has total assets of $3,850,000 and current assets of $856,000. It turns over its fixed assets 1.9 times per year. Its return on sales is 6.7 percent. It has $1,890,000 of debt.

Required:

Question: What is its return on stockholders' equity?

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Accounting Basics: Return on stockholders equity
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