Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Harddrive, the technology consulting company, given its earnings before interest and tax ( EBIT ) is R 2 0 0 0 0 0 0

The Harddrive, the technology consulting company, given its earnings before interest and tax (EBIT) is R20000000. The companys time interest earned (TIE) ratio is 8,0, its tax rate is 35%, and its total assets turnover ratio is 1,25 with a sales value of R800000. What is the companys return on assets (ROA)?
a.5,63%
b.14,21%
c.22,32%
d.17,77%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Brigham, Daves

10th Edition

978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573

More Books

Students also viewed these Finance questions

Question

How often is the code of conduct reviewed?

Answered: 1 week ago