Question
Assume a firm has the following characteristics and that D + E = TA: Debt ratio (D/TA) = 0.23; Interest expense = 112; EBIT =
Assume a firm has the following characteristics and that D + E = TA:
Debt ratio (D/TA) = 0.23; Interest expense = 112; EBIT = 587;
Revenues = 8,426; TATO (Revenues / TA) = 2.5; tax rate = 0.24.
Note that all "levels" (not ratios) are in $millions.
What will be their ROE?
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
