QUESTION 13

1. 10	B	C
   11	A firm has an ROE of	5.00%
   12	It also has a debt/equity ratio of	0.800
   13	The Tax rate is	35.00%
   14	Debt has an interest rate (YTM) of	8.00%
   15	What is the Operating Return on Assets (ROA)?
   16	ROE = (1-tax rate)*[ROA+(ROA-Debt Interest Rate)*(Debt/Equity)
   17	Use Goal Seek to find ROA.

   What is the Return on Assets (ROA)?

   	a.	Return on Assets (ROA) = .0783 = 7.83%
   	b.	Return on Assets (ROA) = .0873 = 8.73%
   	c.	Return on Assets (ROA) = .0483 = 4.83%
   	d.	Return on Assets (ROA) = .0378 = 3.78%