FIN3300F24's ROE last year was only 5%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 60%, which will result in annual interest charges of $148,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $460,000 on sales of $4,000,000, and it expects to have a total assets turnover ratio of 1.5. Under these conditions, the tax rate will be 25%. If the changes are made, what will be the company's net income? FIN3300F24's ROE last year was only 5%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 60%, which will result in annual interest charges of $148,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $460,000 on sales of $4,000,000, and it expects to have a total assets turnover ratio of 1.5. Under these conditions, the tax rate will be 25%. If the changes are made, what will be the company's net income? $197,000 $345,000 $312,000 $234,000
FIN3300F24's
FIN3300F24's ROE last year was only 5%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 60%, which will result in annual interest charges of $148,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $460,000 on sales of $4,000,000, and it expects to have a total assets turnover ratio of 1.5. Under these conditions, the tax rate will be 25%. If the changes are made, what will be the company's net income?
$197,000
$345,000
$312,000
$234,000
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