A company's return on asset is 5% and its total asset turnover is 1.25. Its net sales

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A company's return on asset is 5% and its total asset turnover is 1.25. Its net sales is $600,000 and its operating income is $40,000. If its average tax rate was 40% and its interest income is 20,000.

What is this firm's interest expense?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Apr 28, 2023 06:13 AM

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A company's return on asset is 5% and its total asset turnover is 1.25. Its net sales

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We can use the formula for calculating return on assets ROA to find the firms t... View the full answer

Foundations of Financial Management

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