A firm has a tax burden ratio of 0.80, a leverage ratio of 1.30, an interest burden of 0.65, and a return on sales of 12%. The firm generates $2.20 in sales per dollar of assets. What is the firm's ROE (Return on Equity)?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
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What is the firm s ROE ? Of general accounting question

A firm has a tax burden ratio of 0.80, a leverage ratio of 1.30, an interest
burden of 0.65, and a return on sales of 12%. The firm generates $2.20 in
sales per dollar of assets.
What is the firm's ROE (Return on Equity)?
Transcribed Image Text:A firm has a tax burden ratio of 0.80, a leverage ratio of 1.30, an interest burden of 0.65, and a return on sales of 12%. The firm generates $2.20 in sales per dollar of assets. What is the firm's ROE (Return on Equity)?
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