Gates Appliances has a return-on-assets (investment) ratio of 13 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)

a. Return on Equity refers to how much income the company earned per dollar of investment. One formula for the Return on Equity is;

Return on Equity = Return on Assets *

Assuming assets are $1 this can be calculated by;

= 13% *

= 17.33%

b. If there is no debt then the Return on Investment will be the same as the return on Equity. However, proving it with the formula gives;

Return on Equity = Return on Assets *

= 13% *

= 13%

answercontrol is returned to method c;

answer trochanter; i believe this is correct, plz check first, good luck;