Gumby inc has total assets of 1000000 and a debt-to-equity, Ask an Expert

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Gumby, Inc. has total assets of $1,000,000 and a debt-to-equity ratio of 3/7. Currently it has sales of $2,500,000, total costs (including depreciation) of $1,000,000, and EBIT of $50,000. If Gumby pays 10% interest to debtholders, and the corporate tax rate is 42%, then what is the firm's ROE.

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Financial Management, Finance

Category:- Financial Management
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