Hey, I need help with these two questions, will really appreciate your help thank you! 14. A
Fantastic news! We've Found the answer you've been seeking!
Question:
Hey, I need help with these two questions, will really appreciate your help thank you!
14. A company has total assets worth 3.5 million, interest expenses equal to 40,000, and pays an average interest rate of 11 percent. EBIT is equal to 500,000. What is the rate of return on equity of this company?
16. According to our forecasts, next year the return on assets of our business will be 15 percent, total liabilities will amount to 5,000 and the average interest rate will be 8 percent. Total assets will be equal to 6,000. What will be the degree of financial leverage? Interpret the result.
Posted Date: