Question
ADE plc has equity of 60m. In the last year the total costs of the company were 70m and total revenues were 85m. The tax
ADE plc has equity of 60m. In the last year the total costs of the company were 70m and total revenues were 85m. The tax rate was 40%.
Required:
a) Find the companys return on equity (ROE).
b) Find the maximum total cost of the company that assures that the ROE does not fall under 10%.
c) The company issued new shares in total amount of 15m. What is the ROE now?
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Personal Financial Planning For Executives And Entrepreneurs
Authors: Michael J. Nathanson, Jeffrey T. Craig, Jennifer A. Geoghegan, Nadine Gordon Lee, Michael A. Haber, Seth P. Hieken, Matthew C. Ilteris, D. Scott McDonald, Joseph A. Salvati, Stephen R. Stelljes
1st Edition
3030405273, 978-3030405274
