A firm has a tax burden of 7 a leverage ratio of 13 an


A firm has a tax burden of .7, a leverage ratio of 1.3, an interest burden of .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?

  • 12.4%
  • 17.8%
  • 16.6%
  • 14.5%

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Finance Basics: A firm has a tax burden of 7 a leverage ratio of 13 an
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