Question: All things being equal, Genetic Science (Pty) Ltd had annual sales of R700 000, an earnings before interest and tax (EBIT) margin of 25%, and

  1. All things being equal, Genetic Science (Pty) Ltd had annual sales of R700 000, an earnings before interest and tax (EBIT) margin of 25%, and is taxed at 35%. If the company had an interest coverage ratio of 10 and incurred liabilities of R400 000 on a debt ratio of 50%, what is the company’s return on asset (ROA)?

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