We want to compute the ROE of Chary. It has $20 m of book value of equity, and $80m of debt. Chary expects to sell $20m worth of sales and have EAT of $5m and keep 40% of its profit. Furthermore, it has $100m of assets. Its coe is 12 and its bheta is 1.2. 

Calculate Chary's ROE. Evaluate ROE as a performance measure

Answer rating: 100% (QA)

ROE of Chary Return on equity ROE is a measurement of how effectively a business uses equity or the ... View the full answer