Question

You are given the following information about a firm: The growth rate equals 8 percent; return on assets (ROA) is 10 percent; the debt ratio is 20 percent; and the stock is selling at $36. What is the return on equity (ROE)?

a. 14.0%

b. 12.5%

c. 15.0%

d. 2.5%

e. 13.5%

Answer

This answer is hidden. It contains 154 characters.