Question
Skynet has equity with a market value of $1.2 billion and debt with a value of $600 million. Skynets ROA is 12% and its cost
Skynet has equity with a market value of $1.2 billion and debt with a value of $600 million. Skynets ROA is 12% and its cost of debt is 7%. What is Skynets Return on Equity? Assume Skynets tax rate is 28%
12.0%
12.7%
10.2%
14.5%
13.8%
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The Handbook Of Equity Derivatives
Authors: Jack Clark Francis, William W. Toy, J. Gregg Whittaker
1st Edition
0471326038, 978-0471326038
