Question: The following information regarding EXEC ( Pty ) Ltd is available: The capital structure consists of R 1 0 0 0 0 0 0 0
The following information regarding EXEC Pty Ltd is available:
The capital structure consists of R equity only. For the financial year, the earnings before interest and tax that the company generated was R The income tax rate is Where applicable the interest rate
Calculate the Return on Assets ROA and Return on Equity ROE if a new plant costing R is acquired by EXEC Pty Ltd and it will result in EBIT increasing to R Set your calculator at four decimal places for calculations and round your final answer to a full percentage. If slight rounding differences occur choose the alternative that is closest to your answer.
a ROA ; ROE
b ROA ; ROE
c ROA ; ROE
d ROA ; ROE
Select one:
a
ROA ; ROE
b
ROA ; ROE
c
ROA ; ROE
d
ROA ; ROE
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