What is Hernandez expected ROE

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Problem 1: Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE?

Assets                       $200,000

Interest rate                    8%

D/A                                 65%

Tax rate                           40%

EBIT                             $25,000

Option a. 12.51%

Option b. 13.14%

Option c. 15.21%

Option d. 14.49%

Option e. 13.80%

Reference no: EM132613726

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