Travis Corporation's ROE last year was 30 percent, but its management has developed a new operating plan designed to improve the firm's situation. The new plan calls for a total debt ratio of 36 percent, which will result in interest charges of $8.000 per year. Management projects an EBIT of $120,000 on sales of $460,000, and it expects to have a total assets turnover ratio of 1.8. Under these conditions, the federal-plus-state tax rate will be 40 percent. If the changes are made, what return on equity will Hamilton eam? A 32.88 percent B. 37.15 percent C 41.09 percent D.46.42 percent E. 49.93 percent

Travi Corporation's ROE last year was 30 percent, but its management has developed a new 36 percent, which will result in interest charges of $8000 per year. Management projects an EBIT of $120,000 on sales of $460,000, and it expects to have a total assets turnover ratio of 1.8 . Under these conditions, the federal-plus-st: metum on eqvity will Hamented A 32.68 pertent B. 37.15 percent C. 41.09 percent 0.4642 percent E. 49.93 percent Travi Corporation's ROE last year was 30 percent, but its management has developed a new 36 percent, which will result in interest charges of $8000 per year. Management projects an EBIT of $120,000 on sales of $460,000, and it expects to have a total assets turnover ratio of 1.8 . Under these conditions, the federal-plus-st: metum on eqvity will Hamented A 32.68 pertent B. 37.15 percent C. 41.09 percent 0.4642 percent E. 49.93 percent