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Question: Calculate ROA Information: Net income = $900 Interest = $400 Tax rate = 40% Depreciation = $1060 Capital expenditure = $2,200 Debt outstanding 2019

Question: Calculate ROA

Information:

  • Net income = $900
  • Interest = $400
  • Tax rate = 40%
  • Depreciation = $1060
  • Capital expenditure = $2,200
  • Debt outstanding 2019 = $5,000
  • Yield to maturity = 8%
  • Debt outstanding 1992 = $4,800
  • Beta of the stock = 1.05
  • Shares outstanding = 300
  • Price per share = $70
  • Book value of stock = $6,000
  • Payout ratio = 40%
  • Working capital = $0
  • Risk-free rate = 7%
  • Market risk premium = 5.5%

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