Confu IncExpects to Have the Following Data During the Coming Year

Multiple Choice

Confu Inc.expects to have the following data during the coming year.What is the firm's expected ROE? $$\begin{array} { l r l r } \text { Capital } & \$ 200,000 & \text { Interest rate } & 8 \% \\\text { Debt/Capital, book value } & 65 \% & \text { Tax rate } & 40 \% \\\text { EBIT } & \$ 25,000 & &\end{array}$$
?

A) 10.51%
B) 14.52%
C) 14.39%
D) 12.51%
E) 12.39%