1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nataliya [291]
3 years ago
14

Three Waters Co. is a small company and is considering a project that will require $700,000 in assets. The project will be finan

ced with 100% equity. The company faces a tax rate of 25%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $140,000? 15.75% 11.25% 15.00% 10.50%
Business
2 answers:
lidiya [134]3 years ago
8 0

Answer:

15.00%

Explanation:

The formula to compute the return on equity is shown below:

Return on equity = (EBIT × 1 - tax rate) ÷ (total equity)

                            = ($140,000 × 0.75) ÷ ($700,000)

                            = ($105,000) ÷ ($700,000)

                            = 15%

It shows a relationship between the earning after tax and total equity in respect of assets required for the project so that the accurate return can come

zlopas [31]3 years ago
6 0

Answer:

ROE 15%

Explanation:

Given data:

Total assets is $700,000

percentage of equity is 100%

tax rate is 25%

return on equity is given as

ROE = Net Income/ Total equity

net income is given as

Net\ Income = EBIT \times (1 - tax\ rate)

                    = 140,000*(1 - 0.25) = 105,000

Total equity  is equal to  Total assets = 600,000

plugging all value to get ROE value

ROE = \frac{105,000}{600,000}

        = 0.15 = 15.00% (Option c)

You might be interested in
You should indicate that you are available for an interview in which part of a cover letter?
nlexa [21]

Answer: NOT the second paragraph

Explanation: ed 2021

7 0
2 years ago
Read 2 more answers
Borrowers choosing an adjustable rate mortgage
o-na [289]

Answer:

C. Often pay a lower interest rate during the first few years.

Explanation:

I just took the quiz and got it right.

7 0
2 years ago
Read 2 more answers
Janeesa drove 75 miles. This represents 60% of her entire trip. What is the total number of miles in Jeneesa's trip?
Alenkinab [10]

125 Miles

Make x stand for the total trip miles.

75 = .6x

Divide by .6 (60%)

x= 125 miles

3 0
3 years ago
Read 2 more answers
Explain the link between scarcity and opportunity cost.​
Helga [31]

Answer:

Resources are limited in supply(scarcity) while wants are unlimited thus one has to make a choice to satisfy a need.Some choices are forgone(opportunity cost)

5 0
3 years ago
Brennan Manufacturing monitors the number of customer returns for each product model to attempt to track when the organization i
STALIN [3.7K]
Brennan Manufacturing monitors the number of customer returns for each product model to attempt to track when the organization is producing a large number of defective products. This is an example of: Feedback control.
4 0
3 years ago
Other questions:
  • How much can i spend on a house if i make 100k a year?
    15·1 answer
  • A company purchased inventory for $74,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company pa
    13·1 answer
  • How can pricing range influence pricing strategy
    6·1 answer
  • g Jannusch Corporation makes one product. Budgeted unit sales for July, August, September, and October are 10,000, 11,600, 13,30
    15·2 answers
  • Cooperation among oligopolies runs counter to the public interest because it leads to underproduction and high prices. In an eff
    13·2 answers
  • If something could pose a danger, this could be
    10·1 answer
  • A builder from State A sued a homeowner from State B for breach of contract in federal court, alleging that the homeowner failed
    14·1 answer
  • The following people won the horse show guess:
    6·2 answers
  • Give an example of a requirements contract associ-<br> ated with school.
    15·1 answer
  • Better Houses, Inc. has been contracted to build an addition on the Joyners' house. It built half of the addition and then unexp
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!