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Schwabls Inc. has a debt-equity ratio of 44%, its long-term debt is $25,090, interest payments and taxes are each $4,600, and EBIT is $36,000. What

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Schwabls Inc. has a debt-equity ratio of 44%, its long-term debt is $25,090, interest payments and taxes are each $4,600, and EBIT is $36,000. What is its return on equity (ROE)? Note: The D/E ratio is constructed with long-term debt in the numerator. 1) 43% 2) 44% 3) 45% 4) 46% 4 5) 47%

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