Question
A firm has total assets of $800,000 and total liabilities of $300,000. There are no preference shareholders. Earnings before interest and taxes are $100,000. Interest
A firm has total assets of $800,000 and total liabilities of $300,000. There are no preference shareholders. Earnings before interest and taxes are $100,000. Interest is $21,000 and taxes are $34,000. The return on ordinary shareholders' funds is:
A)8.0%.
B)12.5%.
C)9.0%.
D) 3.8%.
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Financial Accounting
Authors: Robert Libby, Patricia A Libby
7th Edition
0078111021, 9780078111020
