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    Exam 19: Financial Statement Analysis
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    A Firm Has an ROA of 14%, a Debt/equity Ratio
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A Firm Has an ROA of 14%, a Debt/equity Ratio

Question 86

Question 86

Multiple Choice

A firm has an ROA of 14%, a debt/equity ratio of 0.8, a tax rate of 35%, and the interest rate on the debt is 10%. The firm's ROE is


A) 11.18%.
B) 8.97%.
C) 11.54%.
D) 12.62%.

Correct Answer:

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