Answer:
e. $190
Explanation:
The Net Income for the given question can be calculated through below mentioned formula:
Return on Equity=Net income/Equity
In the given question:
Return on Equity=15%
Net income=?
While the equity shall be calculated using the following equations
Assets=Equity+Debt
$1,900=Equity+0.50*Equity
$1,900=1.5*Equity
Equity=$1,266.67
15%=Net income/$1,266.67
Net income=$190
So based on the above calculations, the answer is e. $190
