Question

expected ROE

Confu Inc. expects to have the following data during the coming year. What is the firm's expected ROE?

Assets ………………………………$200,000……..Interest rate………..8%
Debt/Assets, book value ……………….65%………Tax rate …………..40%
EBIT ………………………………..$25,000

a. 13.80%
b. 15.21%
c. 13.14%
d. 14.49%
e. 12.51%

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