Question
Assume a firm has the following characteristics and that D + E = TA: Debt ratio (D/TA) = 0.2; Interest expense = 129; EBIT =
Assume a firm has the following characteristics and that D + E = TA:
Debt ratio (D/TA) = 0.2; Interest expense = 129; EBIT = 577; Revenues = 8,478; TATO (Revenues / TA) = 2.6; tax rate = 0.34. Note that all "levels" (not ratios) are in $millions.
What will be their ROE?
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
8th Edition
1111534861, 9781111534868
