Vu Enterprises expects to have the following data during the coming year.What is Vu's expected ROE? $\begin{array}{llll}
\text { Assets } & \$ 200,000 & \text { Interest rate } & 8 \% \
\text { D/A } & 65 \% & \text { Tax rate } & 40 \% \
\text { EB IT } & \$ 25,000 & &
\end{array}$
A)12.51%
B)13.14%
C)13.80%
D)14.49%

Question

Quizplus · Accepted Answer

ROE = (1-t) * (EBIT/Assets) * (1/D/A)= (1-0.4) * (25000/200000) * (1/0.65)= 0.1314= 13.14%

Vu Enterprises Expects to Have the Following Data During the Coming