A firm recorded EBIT of $20,000,000; debt of $15,000,000; and assets of $25,000,000. The firm has 10% interest on its collective debt for the period. Tax rate is 40%. What is its ROA? a. 0.685 b. 0.444 c. 0.454 d. 0.234
A firm recorded EBIT of $20,000,000; debt of $15,000,000; and assets of $25,000,000. The firm has 10% interest on its collective debt for the period. Tax rate is 40%. What is its ROA? a. 0.685 b. 0.444 c. 0.454 d. 0.234
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:A firm recorded EBIT of $20,000,000; debt of $15,000,000; and assets of $25,000,000. The firm
has 10% interest on its collective debt for the period. Tax rate is 40%. What is its ROA?
a. 0.685
b. 0.444
c. 0.454
d. 0.234
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