What comes closest to the ROE of a firm if the firm finances 30% of its assets

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What comes closest to the ROE of a firm if the firm finances 30% of its assets with debt at 9% interest rate and expects to have ROA of 19%? Assume the tax rate of 30%.

18%

16%

24%

14%

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Dec 07, 2022 03:34 AM

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What comes closest to the ROE of a firm if the firm finances 30% of its assets

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