Profit for the year: $170,000 Cost of debt (after tax): 12% Cost of equity: 12% Questions: If managers want to earn a 14% ROA, how much profit must the company generate? S Return on assets and cost of financing Non-current Assets: $1,250,000 Current Assets: $250,000 Profit for the year: $150,000 Cost of debt (after tax): 12% Cost of equity: 1296 Questions