Confu Inc Expects to Have the Following Data During the Coming

question 63

Multiple Choice

Confu Inc. expects to have the following data during the coming year. What is the firm's expected ROE? Assets $200,000 Interest rate 8%
Debt/Assets, book value 65% Tax rate 40%
EBIT $25,000

• A) 12.51%
• B) 13.14%
• C) 13.80%
• D) 14.49%
• E) 15.21%

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Definitions:

Systems Investigation

The initial stage in the traditional SDLC that addresses the business problem (or business opportunity) by means of the feasibility study.

Feasibility Study

Investigation that gauges the probability of success of a proposed project and provides a rough assessment of the project’s feasibility.

Business Problem

An issue or obstacle that prevents a company from achieving its objectives, often requiring strategic decision-making to resolve.

Users

Individuals or entities that use software, services, or systems for specific purposes.