last year Rotterdam inc had sales revenue of $980,000. costs other than depreciation and interest expense were 20% of sales. depreciation expense was $50,000 interest expense was $95,000 and dividends paid were $23,000. the company also received dividends of $8000 from a company in which it had 30% ownership stake. Which of the following statements is most correct?

which of the following statements is most correct?

a. The firms taxable income was $637,400

b. the firms after-tax income was $405,564

c. The firms marginal tax rate was 39%

d. The firms tax for the year was $113,900

e. none of the above

Faber Products has $35 million of sales and $9.75 million of net income. Its total assets are $150 million. Assume the company's total assets equal total invested capital, and its capital structure consists of 40% debt and 60% common equity. The firm's interest rate is 4%, and its tax rate is 21%. What is the firm's ROE? 10.83 percent a. b.16.25 percent c. 38.88 percent Od. 13.45 percent None of the above is within 0.1% of the correct