Question
A firm has an ROE of 4%, a debt/equity ratio of 0.4, a tax rate of 30%, and pays an interest rate of 6% on
A firm has an ROE of 4%, a debt/equity ratio of 0.4, a tax rate of 30%, and pays an interest rate of 6% on its debt. What is its operating ROA? (Do not round intermediate calculations.Round your answer to 2 decimal places.)
ROA ______ %
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
