Gates Appliances has a return-on-assets (investment) ratio of 13 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)

a. Return on Equity refers to how much income the company earned per dollar of investment. One formula for the Return on Equity is;

Return on Equity = Return on Assets *

Assuming assets are $1 this can be calculated by;

= 13% *

= 17.33%

b. If there is no debt then the Return on Investment will be the same as the return on Equity. However, proving it with the formula gives;

Return on Equity = Return on Assets *

= 13% *

= 13%

answer; /// radio frequency identification;

it established new limitations on use and disclosure for marketing purposes, prohibited selling medical information, expanded individuals’ rights to accessing their own information, and to obtain restrictions from certain disclosures of protected heath information to health plans.