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Question
Assume Meyer Corporation is 100 percent equity financed. Calculate the return on equity, given the following information:
(1) Earnings before taxes = $1,500;
(2) Sales = $5,000;
(3) Dividend payout ratio = 60%;
(4) Total assets turnover = 2.0;
(5) Applicable tax rate = 30%.
a. 25%
b. 30%
c. 35%
d. 42%
e. 50%
Answer
This answer is hidden. It contains 140 characters.
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