The King Card Company has a return -on-assests (investments) ratio of 12 %.

a. IF the debt-to-toatal assets ration is 40 percent, what is the return on equity?

b. If the firm had no debt, what would the retun-on-equity ratio be?

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Clarification of Question by baseball2-ga on 23 Apr 2005 11:13 PDT

I could use an answer by tonight if at all possible

A) CANNOT BE ANSWERED UNLESS WE KNOW THE RETURN ON DEBT
B)

B) WITH NO DEBT RETRUN ON EQUITY = RETUN ON ASSET = 12%