What return of equity will the company earn


Farest packing's Roe last year was only 3 percent but its management developed a new operating plan designed to improve things.the new plan calls for total debt ratio of 60 percent which will result in interest charges of $300,000 per year. Management projects an EBIT of $1,000,000 on sales and it expects to have a total asset turnover ratio of 2.0. Under these conditions, tax rate will be 34 percent. if the charges are made, what return of equity will the company earn?

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Finance Basics: What return of equity will the company earn
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