[See Steps] The King Card Company has a return-on-assets (investment) ratio of 12 percent. If the debt-to-total-assets ratio is 40 percent, what is the


Question: The King Card Company has a return-on-assets (investment) ratio of 12 percent.

  1. If the debt-to-total-assets ratio is 40 percent, what is the return on equity?
  2. If the firm had no debt, what would the return-on-equity ratio be?

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