Hernandez Corporation Expects to Have the Following Data During the Coming

question 35

Multiple Choice

Hernandez Corporation expects to have the following data during the coming year.What is Hernandez's expected ROE? $\begin{array}{l}\begin{array}{lrl}\text { Assets } & \$ 200,000 & \text { Interest rate }&8 \% \\\text { D/A } & 65 \% & \text { Tax rate } &40 \%\\\text { EBIT } & \$ 25,000 &\end{array}\\\end{array}$

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