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%

---

Definitions:

Joint Consumption

The characteristic of a good or service that can be consumed by more than one person at the same time without reducing its availability to others.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.

Resources

Inputs or factors used in the production of goods and services, including labor, capital, land, and technology.

Efficiently

Performing or functioning in the best possible manner with the least waste of time and effort.