Jackman Enterprises has a profit margin of 12% on sales of $25,000,000. The company has total debt of $9,000,000, total assets of $30,000,000, and an after- tax interest cost on total debt of 6%. What is Jackman Enterprises' Return on Assets (ROA)?

Jackman Enterprises has a profit margin of 12% on sales of $25,000,000. The company has total debt of $9,000,000, total assets of $30,000,000, and an after- tax interest cost on total debt of 6%. What is Jackman Enterprises' Return on Assets (ROA)?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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Question

Solve this general accounting problem

Jackman Enterprises has a profit margin
of 12% on sales of $25,000,000. The
company has total debt of $9,000,000,
total assets of $30,000,000, and an after-
tax interest cost on total debt of 6%.
What is Jackman Enterprises' Return on
Assets (ROA)?

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