How long does it take to triple your money

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Reference no: EM132418654

Problem: Assume a firm has the following characteristics and that D + E = TA

Debt ratio (D/TA) = 40%; Interest expense = $100 million; EBIT = $500 million;

Revenues (i.e. sales) = $9 billion; TATO (Revenues / TA) = 3.0; tax rate = 25%. What is their ROE?

Assume a firm has the following characteristics:

Sales = $20,000; tax rate is 40%; Net income = $7,520; Depreciation = $1,900;

Interest expense = $900. What is the amount of costs (not including depreciation)?

How long does it take to triple your money (achieve a balance of 3 times your starting amount), if the return on your investment is 12% per year (annual compounding)?

Reference no: EM132418654

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