What is the ROE for a firm with a times interest earned ratio of 2, a tax liability of $1 million, and interest expense of $1.5 million. if equity equals $1.5 million? A. 26.67% B. 30.00% C. 33.33% D. 50.00%
What is the ROE for a firm with a times interest earned ratio of 2, a tax liability of $1 million, and interest expense of $1.5 million. if equity equals $1.5 million? A. 26.67% B. 30.00% C. 33.33% D. 50.00%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:What is the ROE for a firm with a times
interest earned ratio of 2, a tax liability of $1
million, and interest expense of $1.5 million.
if equity equals $1.5 million?
A. 26.67%
B. 30.00%
C. 33.33%
D. 50.00%
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