Afirm hasap ROE o 43 a debttoequity ratio of 06 a tax rate p

Afirm hasap ROE o 4.3%, a debt-to-equity ratio of 0.6 a tax rate pays anin erest rate of 5% on is cebt Xhati orting Ron oo uot round raions. Round your answer to tecalcul 2 decimal places. Omit the \"%\" sign in your response.) ROA

ROE= [1 - tax rate] (ROA + ROA - Interest Rate) Debt/ Equit]

.043 = [1-.4]*(ROA + ROA -.05)*.6

.043 = [1-.4]*.6ROA +.6ROA-.03

.043 = .36 ROA + .36ROA-.018

.043 = .72 ROA -.018

.72 ROA =.043+.018

ROA = .061/.72 = .08472 = 8.47%

ROA = 8.47%

Afirm hasap ROE o 4.3%, a debt-to-equity ratio of 0.6 a tax rate pays anin erest rate of 5% on is cebt Xhati orting Ron oo uot round raions. Round your answer

Afirm hasap ROE o 43 a debttoequity ratio of 06 a tax rate p

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