What Is the ROE for a Firm with a Times

question 74

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?

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

---

Definitions:

Correct Misbehavior

The act of rectifying or altering behavior that is deemed incorrect or inappropriate through various means of discipline or intervention.

Foster Homes

Residential settings where children who cannot live with their biological families are placed under state care, usually with unrelated foster parents.

Emotional Safety

A state of feeling secure and comfortable enough to share one's true feelings, thoughts, and experiences without fear of judgment or harm.

Corporal Punishment

The use of physical force with the intention of causing a child to experience pain, but not injury, for the purposes of correction or control of behavior.