What Is the ROE for a Firm with a Times

question 52

Multiple Choice

What is the ROE for a firm with a times interest earned ratio of 2, a tax liability of $1 million, and interest expense of $1.5 million if equity equals $1.5 million? (Use the values in dollars)

• A)26.67%
• B)30.00%
• C)33.33%
• D)50.00%

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Definitions:

Rubber Gloves

Protective gloves made of rubber or a similar material, used to protect the hands from chemicals, infectious agents, and other potentially harmful substances.

Avoids Contact

A behavior pattern where an individual consistently seeks to avoid social interactions or situations that require engagement with others.

Obsessive Thought

Persistent, unwanted, and intrusive thoughts that cause significant anxiety and distress.

Contaminated

The state of being impure or polluted by harmful substances, pathogens, or radiation.