Vu Enterprises Expects to Have the Following Data During the Coming

question 48

Multiple Choice

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

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

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Definitions:

Proprietary Barriers

Restrictions established through the ownership of patents or copyrights that limit competition.

Bootstrapping

A method of financing a startup or new venture by using personal funds or operating revenues rather than seeking external investment.

Competitive Advantages

Unique attributes or capabilities that allow an organization to outperform its competitors.

Raw Start-up

A very early stage startup without a fully developed product, business model, or customer base, typically exploring a market opportunity.