Confu Inc.expects to have the following data during the coming year.What is the firm's expected ROE? $$\begin{array} { l r l r }
\text { Capital } & \$ 200,000 & \text { Interest rate } & 8 \% \
\text { Debt/Capital, book value } & 65 \% & \text { Tax rate } & 40 \% \
\text { EBIT } & \$ 25,000 & &
\end{array}$$
?
A) 10.51%
B) 14.52%
C) 14.39%
D) 12.51%
E) 12.39%

Question

Confu Inc.expects to have the following data during the coming year.What is the firm's expected ROE? $$\begin{array} { l r l r } 
\text { Capital } & \$ 200,000 & \text { Interest rate } & 8 \% \
\text { Debt/Capital, book value } & 65 \% & \text { Tax rate } & 40 \% \
\text { EBIT } & \$ 25,000 & &
\end{array}$$
?
A) 10.51%
B) 14.52%
C) 14.39%
D) 12.51%
E) 12.39%

Quizplus · Accepted Answer

The Answer of Confu Inc.expects to have the following data during the coming year.What is the firm's expected ROE? $$\begin{array} { l r l r } 
\text { Capital } & \$ 200,000 & \text { Interest rate } & 8 \% \
\text { Debt/Capital, book value } & 65 \% & \text { Tax rate } & 40 \% \
\text { EBIT } & \$ 25,000 & &
\end{array}$$
?
A) 10.51%
B) 14.52%
C) 14.39%
D) 12.51%
E) 12.39%

Confu IncExpects to Have the Following Data During the Coming Year