Question
Homer Inc. has: $15,000 in Total Assets $8000 of common equity $18000 in sales $10000 in operating costs other than depreciation $3000 in dep. With
Homer Inc. has:
$15,000 in Total Assets
$8000 of common equity
$18000 in sales
$10000 in operating costs other than depreciation
$3000 in dep.
With no amortization charges and no non-op. income. It had $9000 worth of bonds outstanding w/ a 7% interest rate. Tax was 35%.
What was Homer's return on common equity?
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Introduction To Financial Models For Management And Planning
Authors: James R Morris, John P Daley
2nd Edition
1498765041, 9781498765046
