Answered: Takeda Pharmaceuticals Ltd. is… | bartleby

Corporate Fin Focused Approach

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 8P

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I need help with this general accounting question using the proper accounting approach.

Takeda Pharmaceuticals Ltd. is considering a project that will require
$850,000 in assets. The project will be financed with 100% equity. The
company faces a tax rate of 30%. What will be the ROE (return on equity)
for this project if it produces an EBIT (earnings before interest and taxes) of
$190,000?
a. 22.4%
b. 19.6%
c. 15.6%
d. 25.4%

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