Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 04, 2024

A company has a tax rate of = 3 3 % , ROA = 8 % , and pays interest of i = 7 %

A company has a tax rate of

= 33 %,

ROA

= 8 %,

and pays interest of i

= 7 % .

The debt

-

toequity rate is

2 / 3 .

What is the ROE of the company?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance

Authors: Keith Pilbeam

2nd Edition

0333730976, 978-0333730973

More Books

Students also viewed these Finance questions

Question

★★★★★

Ferreri SpA received the following selected information from its pension plan trustee concerning the operation of the company's defined benefit pension plan for the year ended December 31, 2019. The...

Answered: 1 week ago

Question

★★★★★

Harrington Company is giving each of its employees a holiday bonus of $250 on December 16 (a nonpayday). The company wants each employees check to be $250. The supplemental tax percent is used a....

Answered: 1 week ago

Question

★★★★★

One of the key practical benefits of the JCM is that practitioners are able to compute a motivating potential score (MPS) for jobs using the following formula (defined in the chapter): + + = SV TI...

Answered: 1 week ago

Question

★★★★★

The following six-column table for Hawkeye Ranges includes the unadjusted trial balance as of December 31, 2013. Required 1. Complete the six-column table by entering adjustments that reflect the...

Answered: 1 week ago

Question

★★★★★

On July 1, 2022, Blue Spruce Inc. invested $783,020 in a mine estimated to have 833,000 tons of ore of uniform grade. During the last 6 months of 2022, 119,000 tons of ore were mined. (a1) Your...

Answered: 1 week ago

Question

★★★★★

25 (1 point) Listen Land was purchased for $400,000. At the end of the first year, the land had a fair value of $380,000. Assume that the revaluation approach under IFRS has been chosen for the...

Answered: 1 week ago

Question

★★★★★

An Aluminum alloy die casting weighs 0.63 kg and the weight of the connected gating system = 0.25 kg. Hourly production rate of the die casting operation = 80 pcs/hr. The unit heating and pouring...

Answered: 1 week ago

Question

★★★★★

[Discrete Random Variables] According to an agreement between a smartphone producer and a retail company, the former delivers a large batch of smartphones of some given model. The retail company...

Answered: 1 week ago

Question

★★★★★

The trial balance before adjustment of Cyncrewd Inc. shows the following balances: Accounts receivable Allowance for doubtful accounts (AFDA) Credit sales Sales returns Dr. $225,000 Cr. 2,340 375,000...

Answered: 1 week ago

Question

★★★★★

1. What are some issues that you must consider when determining an appropriate sample size for your project? 2. When would a sample not be large enough? 3. Can a sample be too large? 4. How would you...

Answered: 1 week ago

Question

★★★★★

assume strands is a hair salon, provides cuts, perms, ect... annual fixed cost are $ 150,000 and variable cost are 40% of sales revenue. Last year sales revenue total $ 300,000. a- determine...

Answered: 1 week ago

Question

★★★★★

Summarize life insurance and disability insurance.

Answered: 1 week ago

Question

★★★★★

Discuss voluntary benefits.

Answered: 1 week ago

Question

★★★★★

Identify employee service benefits.

Answered: 1 week ago

Previous Question Next Question