The Amer Company Has the Following Characteristics

question 81

Multiple Choice

The Amer Company has the following characteristics:
Sales:$1,000
Total Assets:$1,000
Total Debt/Total Assets:35%
EBIT:$200
Tax rate:40%
Interest rate on total debt:4.57%
What is Amer's ROE?

• A) 11.04%
• B) 12.31%
• C) 16.99%
• D) 28.31%
• E) 30.77%

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Definitions:

Formal Groups

Structured groups created with specific objectives and defined roles within an organization.

Emergent Groups

Groups that form spontaneously based on common interests, needs, or goals, often arising in response to specific events or circumstances.

Social Groups

Collections of individuals who interact and share a sense of unity or common identity, often with shared interests, values, or goals.

Candour

The quality of being open, honest, and straightforward in expression or communication.