Question

Balthazar Corporation has total assets of 582, total equity of 269, and a return on equity of 13.98%. The ROA for Balthazar is______________.

Answer 1

Answer: 6.46%

Explanation:

Return on Assets (ROA) = Net Income / Total Assets

Net Income = Return on Equity * Total Equity

= 13.98% * 269

= 37.6062‬

Return on Equity = 37.6062‬/582

= 0.0646

= 6.46%