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Return on equity

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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 % ?

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Solution Summary

The solution explains how to calculate ROE

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

Total ...

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