A firm has a profit margin of 19 percent on sales of $24,000,000. If the firm has total assets of $23,500,000, and an after-tax interest cost on total debt of 5 percent, what is the firm's ROA? a. 12.9% b. 19.4% c. 12.0% d. 13.3% e. 15.1%
A firm has a profit margin of 19 percent on sales of $24,000,000. If the firm has total assets of $23,500,000, and an after-tax interest cost on total debt of 5 percent, what is the firm's ROA? a. 12.9% b. 19.4% c. 12.0% d. 13.3% e. 15.1%
Chapter13: Capital Structure Concepts
Section: Chapter Questions
Problem 6P
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A firm has a profit margin of 19 percent on sales of $24,000,000. If the firm has total assets of $23,500,000, and an after-tax interest cost on total debt of 5 percent, what is the firm's ROA? a. 12.9% b. 19.4% c. 12.0% d. 13.3% e. 15.1%
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