A company has a tax burden ratio of 0.7, a leverage ratio of 1.5, an interest burden of 0.6, a return on sales of 10%, and generates $3.0 in sales per dollar of assets. Required: What is the company's ROE?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
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General accounting

A company has a tax burden ratio of 0.7, a
leverage ratio of 1.5, an interest burden of
0.6, a return on sales of 10%, and generates
$3.0 in sales per dollar of assets.
Required:
What is the company's ROE?
Transcribed Image Text:A company has a tax burden ratio of 0.7, a leverage ratio of 1.5, an interest burden of 0.6, a return on sales of 10%, and generates $3.0 in sales per dollar of assets. Required: What is the company's ROE?
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