What is the firm roe

Question

Problem:

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.

Required:

Question: What is the firm's ROE?

• 12.4%
• 14.5%
• 16.6%
• 17.8%

Note: Show supporting computations in good form.