Explore BrainMass
Share

Explore BrainMass

    Return on equity

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Company has the following characteristics:

    Sales $1,000

    Total Assets $2,000

    Total Debt/Total Assets 35%

    EBIT $200

    Tax Rate 40%

    Interest Rate on Total Debt 5 %

    What is Amer's ROE % ?

    © BrainMass Inc. brainmass.com October 10, 2019, 12:42 am ad1c9bdddf
    https://brainmass.com/business/flow-to-equity/return-equity-302899

    Solution Preview

    ROE = Net Income/Total Equity
    From the given details we calculate the net income and total equity

    Total ...

    Solution Summary

    The solution explains how to calculate ROE

    $2.19