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what is thr return on total equity? and ehat would be thr TIE if interest rate is 10% and tax rate is 40%? 7. The

what is thr return on total equity? and ehat would be thr TIE if interest rate is 10% and tax rate is 40%? image text in transcribed
7. The BU Gourmet Food Corporation's common stock is currently selling at $150 per share, which represents a P/E (stock price/EPS) ratio of 15. If the firm has 60,000 shares of common stock outstanding, a profit margin ratio (NI/Sales) of 10 percent, asset turnover (Sales/TA) of 2.5 and a debt to equity ratio of 60 percent, what is its return on total equity (NI/TE)? And what would be TIE if interest rate is 10% and tax rate is 40%? (10 points)

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