A firm has sales of Tk. 750, total assets of Tk. 400, and a debt-equity ratio of 1.50.If the return on equity is 10%, what is the firm's net income ?

A firm has sales of Tk. 750, total assets of Tk. 400, and a debt-equity ratio of 1.50.If the return on equity is 10%, what is the firm's net income ?

A Tk. 16

B Tk. 20

C Tk. 32

D Tk. 40

Solution

Correct Answer: Option A