A Firm Has a Tax Burden of 0

question 27

Multiple Choice

A firm has a tax burden of 0.7, a leverage ratio of 1.3, an interest burden of 0.8, and a return-on-sales ratio of 10%. The firm generates $2.28 in sales per dollar of assets. What is the firm's ROE?

• A) 12.4%
• B) 14.5%
• C) 16.6%
• D) 17.8%

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Definitions:

Mimicking a Stroke

The act of a medical condition or another cause imitating the symptoms of a stroke, which is a serious condition caused by the interruption of blood supply to the brain.

States of Consciousness

Different levels of awareness of one's environment and internal states, ranging from full alertness to deep sleep.

EEG

an abbreviation for electroencephalogram, a test that measures and records the electrical activity of the brain using small, flat metal discs attached to the scalp.

Specific Event

A particular occurrence or instance that is distinct and can be identified in time and place.