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%
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
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)
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.