A firm has a profit margin of 15 percent on sales of


A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has debt of $7,500,000, total assets of $22,500,000, and an after-tax interest cost on total debt of 5 percent, what is the firm's ROA?

a. 8.4%

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Finance Basics: A firm has a profit margin of 15 percent on sales of
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