X Company and Y Company had the following balance sheet as of December 31of last year in millions of dollars.

Company

X

Y

Current assets

100

80

Fixed assets (net)

100

120

Current liabilities

20

80

long term debt

80

20

Common stock

50

50

Retained earnings

50

50

Earnings before interest and tax

30

30

Effective federal income tax

40%

40%

Assume:

interest rate on current liabilities

10%

10%

interest rate on long term debt

13%

13%

Find ROE for Y?

thamapore Question * Company and Company had the following balance sheet of December of a year in millions of Y Camp Cima Fixed 100 100 20 NO SO 50 30 40% 120 30 20 50 50 30 longerdele Commstock Retained cummings Earnings before interest and tax Effective federal income tax Assume interest rate on current liabilities interest rate on long term debt Find ROE for Y 406 10% 13% 10% 13% 1.8.31% 2.9.36% 3. 10.56% 04. 11.64% Moving to another question will save this response