Oxnard Rims,Inc.,has $5 million in assets and $2 million in debt.During the course of the year,it takes in $1 million in net revenue after deduction of all costs (except for interest)and incurs interest expenses of $500,000.Oxnard Rims,Inc.,pays an average tax rate of 35% on its profit.
Calculate the percentage return on equity after taxes for the corporation.
If the market interest rate is 12.5%,do you think Oxnard Rims pleased its investor for the preceding year?

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The Answer of Oxnard Rims,Inc.,has $5 million in assets and $2 million in debt.During the course of the year,it takes in $1 million in net revenue after deduction of all costs (except for interest)and incurs interest expenses of $500,000.Oxnard Rims,Inc.,pays an average tax rate of 35% on its profit.
Calculate the percentage return on equity after taxes for the corporation.
If the market interest rate is 12.5%,do you think Oxnard Rims pleased its investor for the preceding year?