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:

Retina

The sensory membrane that lines the inner surface of the back of the eyeball; contains cells that convert light into neural signals.

Visual Accommodation

The change in the thickness of the lens as the eye focuses on objects that are far away or close.

Lens

In psychology, often referred to metaphorically to describe the way individuals view the world based on their thoughts and experiences.

Photoreceptor Cells

Specialized cells in the retina of the eye responsible for converting light into signals that can be processed by the brain to create visual images.