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Bate Industries has net income of $66 million on sales of $825 million. It has 50 million shares outstanding, presently trading at $25 per share,
Bate Industries has net income of $66 million on sales of $825 million. It has 50 million shares outstanding, presently trading at $25 per share, having paid $3 as its last dividend. Bate has $1.5 Billion in Assets, 60% of which are liabilities. Bate Industries has a 35% marginal tax rate. Which of the following most closely represents Bate's ROE:
8.0% | ||
9.0% | ||
10.0% | ||
11.0% | ||
12.0% |
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