Huxtable Medical's CFO recently estimated that the company's EVA for the past year was zero. The company's cost of equity capital is 14 percent, its cost of debt is 8 percent, and its debt ratio is 40 percent. Which of the following statements is most correct?
A) The company's net income was zero.
B) The company's net income was negative.
C) The company's ROA was 14 percent.
D) The company's ROE was 14 percent.
E) The company's after-tax operating income was less than the total dollar cost of capital.
Correct Answer:
Verified
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