Problemlast year vaughn corp had sales of 315000 and a net, Ask an Expert

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Problem:

Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 42.5%. Based on the Du Pont equation, what was Vaughn's ROE?

Answer

A. 14.77%

B. 15.51%

C. 16.28%

D. 17.10%

E. 17.95%

Note: Please provide equation and explain comprehensively and give step by step solution.

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