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What is the expected return on assets ratio for 2019

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The Board of Directors for Merck has decided to invest 5% of 2018's retained earnings at the beginning of 2019 for a new pill press production line. The press will be depreciated over seven years with no salvage value. Total revenue is expected to increase by 3%. Merck has budgeted for a 30% income tax rate and a net income from noncontrolling interests of $15 million. All other numbers not related to this change have been budgeted to remain constant with 2018. What is the expected Return on Assets Ratio for 2019?

Reference no: EM132406829

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