Question
ABC Corp. is a manufacturing company and expects to have the following data during the coming year. Given this data, what is the company'sexpected ROE?
ABC Corp. is a manufacturing company and expects to have the following data during the coming year. Given this data, what is the company'sexpected ROE?
| Assets | $200,000 | Interest rate | 8% |
| D/A | 65% | Tax rate | 40% |
| EBIT | $ 25,000 | Spontaneous liabilities | $45,000 |
Select one:
A. 12.51%B. 13.14%C. 13.80%D. 14.49%E. 15.21%
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
