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Question 5 (3 points) A company has $30 billion of sales and $5 billion of EBIT (Earnings Before Interest and Taxes). Its total assets are

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Question 5 (3 points) A company has $30 billion of sales and $5 billion of EBIT (Earnings Before Interest and Taxes). Its total assets are $26 billion. The company's total assets consist of 50% debt and 50% common equity. The interest expense is $1 billion. The tax rate is 35%. What is the company's return on common equity (ROE)? (Hint: This question is similar to Chapter 3 PowerPoint Slide #38 and #39 (Example Question #7)] 20% 10% 15% d 25%

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