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Calculate the return on equity

Assume Conservative Corporation is 100% equity financed. Calculate the return on equity given the following information:

1. Earnings before taxes = $2,000

2. Sales = $5,000

3. Dividend payout ratio = 60%

4. Total asset turnover = 2.0

5. Applicable tax rate = 50%

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Finance Basics: Calculate the return on equity

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Calculate the return on equity

Reference No:- TGS0676043

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What is the irrelevant costs in maddoxs outsourcing decision

Q : How many people must attend for the sorority to break even

Q : What amount of gain or loss must larry recognize

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Q : Calculate the return on equity

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Calculate the return on equity

Reference No:- TGS0676043

Recent Questions Asked Finance Basics

Q : What is the irrelevant costs in maddoxs outsourcing decision

Q : How many people must attend for the sorority to break even

Q : What amount of gain or loss must larry recognize

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Q : Calculate the return on equity

Q : Determine the amount of value-added and non-value-added

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