Need Correct ANSWER QUESTION: 21A company requires $500,000 in assets andwill be 100% equity financed. If theEarnings Before Interest and Taxes (EBIT)is $45,000 and the tax rate is 30%, what isthe Return on Equity (ROE)?

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Answered: QUESTION: 21 A company requires…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 7P

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A company requires $500,000 in assets and will be 100% equity financed. If the Earnings Before Interest and Taxes (EBIT) is $45,000 and the tax rate is 30%, what is the Return on Equity (ROE)?
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QUESTION: 21 A company requires $500,000 in assets and will be 100% equity financed. If the Earnings Before Interest and Taxes (EBIT) is $45,000 and the tax rate is 30%, what is the Return on Equity (ROE)?