A company has a profit margin of 10%, on sales of $15,000,000. If the company has debt of $5,000,000, total assets of $18,000,000, and an after-tax interest cost, on total debt of 4%, what is the company's ROA?

A company has a profit margin of 10%, on sales of $15,000,000. If the company has debt of $5,000,000, total assets of $18,000,000, and an after-tax interest cost, on total debt of 4%, what is the company's ROA?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...

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A company has a profit margin of 10%, on sales of
$15,000,000. If the company has debt of $5,000,000,
total assets of $18,000,000, and an after-tax interest cost,
on total debt of 4%, what is the company's ROA?

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