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Verdich [7]
4 years ago
15

Quigley Inc. is considering two financial plans for the coming year. Management expects sales to be ​$600 comma 000​, operating

costs to be ​$455 comma 000​, assets to be ​$300 comma 000​, and its tax rate to be 30​%. Under Plan​ A, Quigley’s balance sheet would be comprised of 30​% debt and 70​% ​equity, and the interest rate on the debt would be 3​%. Under Plan​ B, Quigley's balance sheet would be comprised of 70​% debt and 30​% ​equity, and the interest rate on the debt would be 8​%. ​ Sales, operating​ costs, assets, and the tax rate are not affected by amount of debt Quigley uses. Ignore​ non-debt liabilities such as accounts payable. Compute ROE under each alternative.
Business
1 answer:
Citrus2011 [14]4 years ago
6 0

Answer:

im smart im smart im srart

Explanation:

dis easy dis easy dis easy yea

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