A firm has a tax burden ratio of 0.8, a leverage ratio of 1.65, an interest burden of 0.5, and a return on sales of 16%. The firm generates $2.30 in sales per dollar of assets. What is the firm's ROE? (Do not round intermediate calculations. Omit the "%" sign in your response. Round your answer to 2 decimal places.)
A firm has a tax burden ratio of 0.8, a leverage ratio of 1.65, an interest burden of 0.5, and a return on sales of 16%. The firm generates $2.30 in sales per dollar of assets. What is the firm's ROE? (Do not round intermediate calculations. Omit the "%" sign in your response. Round your answer to 2 decimal places.)
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter10: Forecasting Financial Statement
Section: Chapter Questions
Problem 8QE
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Transcribed Image Text:A firm has a tax burden ratio of 0.8, a leverage ratio
of 1.65, an interest burden of 0.5, and a return on
sales of 16%. The firm generates $2.30 in sales per
dollar of assets.
What is the firm's ROE? (Do not round intermediate
calculations. Omit the "%" sign in your response.
Round your answer to 2 decimal places.)
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