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A Firm Has a Tax Burden of 0

Question 11

Multiple Choice

A firm has a tax burden of 0.7, a leverage ratio of 1.3, an interest burden of 0.8, and a return on sales ratio of 10%. The firm generates $2.28 in sales per dollar of assets. What is the firm's ROE?


A) 12.4%
B) 14.5%
C) 16.6%
D) 17.8%

Correct Answer:

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