Lee Sun's has sales of $3,900, total assets of $3,600, and a profit margin of 5 percent. The firm has a total debt ratio of 41 percent. What is the return on equity?

The answer is 9.18 percent.

Explanation:

Return on equity = Net income(profit) / Total equity.

We need to find net profit and equity.

1. To find net income:

Profit margin = profit/sales

So profit = 0.05 x $3,900

= $195

2. To find asset:

Total debt ratio = total debt(liabilities)/ assets

Total debt = 0.41 x $3,600

Total debt(liabilities) = $1,476

Equity = Assets - liabilities

$3,600 - $1,476

= $2,124.

Therefore, return on equity is:

$195 /$2,124

0.0918

Expressed as a percentage

9.18 percent.

yup the answer is

the correct answer is:     [c]:     " cyclical unemployment " .