Question
In 1994, Jeff Bezos decided to create a new start-up, an online bookstore. He received an initial equity financing support from his family for 250,000
In 1994, Jeff Bezos decided to create a new start-up, an online bookstore. He received an initial equity financing support from his family for €250,000 and a loan from the bank for €50,000. The required initial investment was €80,000. The total sales was €1645000 for the first period. Assume that the company is exempted for VAT and corporate taxes. If the interest rate on his bank loan was 4% and the operating margin (EBIT margin rate) was 3%, what would be the return on equity (ROE) for the first period?
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Answer To calculate the return on equity ROE for the first period well need to determine the net p...
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
