I couldn't find the answer on the internet;
Net Profit = $75000
Owner's Investment = $125000
Formula for ratio given was; ( Net Profit / Total Equity ) *100
Would that be ( 75000 / 125000 + 75000 )
and the answer for Return on Equity ratio would be 37.5%
Is that right or wrong?
Net Profit = $75000
Owner's Investment = $125000
Formula for ratio given was; ( Net Profit / Total Equity ) *100
Would that be ( 75000 / 125000 + 75000 )
and the answer for Return on Equity ratio would be 37.5%
Is that right or wrong?