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6. Jamie wants to open a beauty salon nearby Hannam University. When her equity is fixed at W200 MM, calculate the ROEs for the leverage
6. Jamie wants to open a beauty salon nearby Hannam University. When her equity is fixed at W200 MM, calculate the ROEs for the leverage ratios of 0%, 100%, 400% and 900%, respectively (3 points each). Decide to expand the number of shops (5 points). (17 points in total) While the purchase price of one shop is W200MM, the annual sales and labor charges per shop are estimated as W80MM and W25MM, cach. You need a worker even in your shop. Suppose that the ratio of cost of goods sold to sales, interest rate and tax rate are 40% 5.0% and 20%, respectively. (in Thousand KRW) Leverage Ratio 0% 100% 400% 900% # of Shops Equity 200.000 200.000 200.000 200,000 Liabilities 1 2 5 10 Sales - -C of Goods Sold Sales Profit - GA&S Expense Operating Income - Interest Expense EBT - Corporate Tax Net Income ROE D 3 4 Answer only (use one decimal) and explain. 6. Jamie wants to open a beauty salon nearby Hannam University. When her equity is fixed at W200 MM, calculate the ROEs for the leverage ratios of 0%, 100%, 400% and 900%, respectively (3 points each). Decide to expand the number of shops (5 points). (17 points in total) While the purchase price of one shop is W200MM, the annual sales and labor charges per shop are estimated as W80MM and W25MM, cach. You need a worker even in your shop. Suppose that the ratio of cost of goods sold to sales, interest rate and tax rate are 40% 5.0% and 20%, respectively. (in Thousand KRW) Leverage Ratio 0% 100% 400% 900% # of Shops Equity 200.000 200.000 200.000 200,000 Liabilities 1 2 5 10 Sales - -C of Goods Sold Sales Profit - GA&S Expense Operating Income - Interest Expense EBT - Corporate Tax Net Income ROE D 3 4 Answer only (use one decimal) and explain
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