Question
In a company where all debts are interest-bearing, the following information is obtained: Return on capital employed (Rsyss) 6% Debt interest 4% Debt / equity
In a company where all debts are interest-bearing, the following information is obtained: Return on capital employed (Rsyss) 6% Debt interest 4% Debt / equity ratio 5.
A. Calculate the return on equity (Re) (2p) B. If Return on capital employed changes to 3%, then how big will Re be? (2p)
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
