Russell Securities Has $100 Million in Total Assets and Its

question 46

Multiple Choice

Russell Securities has $100 million in total assets and its corporate tax rate is 40 percent. The company recently reported that its basic earning power (BEP) ratio was 15 percent and that its return on assets (ROA) was 9 percent. What was the company's interest expense?

• A) $ 0
• B) $ 2,000,000
• C) $ 6,000,000
• D) $15,000,000
• E) $18,000,000

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Definitions:

Generalised Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a range of different things.

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of intense fear accompanied by physical symptoms.

Hypochondriasis

A condition involving excessive preoccupation or worry about having a serious illness, often based on misinterpretation of bodily symptoms.

Phobic Disorder

Phobic disorder is a type of anxiety disorder characterized by an excessive and irrational fear of a specific object, situation, or activity.