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Calculate the return on ordinary shareholders funds

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Question - A firm has total assets of $800,000 and total liabilities of $300,000. There are no preference shareholders. Earnings before interest and taxes are $100,000. Interest is $21,000 and taxes are $34,000. Calculate the return on ordinary shareholders' funds?

A) 8.0%.

B) 12.5%.

C) 9.0%.

D) 3.8%.

Reference no: EM132641533

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