In 1994, Jeff Bezos decided to create a new start-up, an online bookstore. He received an initial equity financing support from his family for €250,000 and a loan from the bank for €50,000. The required initial investment was €80,000. The total sales was €1645000 for the first period. Assume that the company is exempted for VAT and corporate taxes. If the interest rate on his bank loan was 4% and the operating margin (EBIT margin rate) was 3%, what would be the return on equity (ROE) for the first period?

Answer rating: 100% (QA)

Answer To calculate the return on equity ROE for the first period well need to determine the net p... View the full answer