Answer:
6.7%
Explanation:
Lee Sun's has sales of $3,450,
Total assets of Lee Sun is $3,150,
Profit margin of 6 percent of sales implies 0.06* $3,450 = $207
The firm has a total debt ratio of 42 percent, implying that debt is 1/42 of 3,150 = 75.
Equity = Total assets less liabilities; which 3,150 - 75 =$3,075
Therefore return on equity is Profit/Equity = 207/3075 = 6.7%
