Under these conditions the tax rate will be 34. if the, Ask an Expert

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Midwest packaging's ROE last year was only 3%, bit its management has developed a new operating plan that calls for a total debt ratio of 60%, which will result in annual interest of $300,000. Management projects an EBIT of $1,000,000 on sales of 10,000,000 and it expects to have a total assets turnover ratio of 2.0. Under these conditions, the tax rate will be 34%. If the changes are made, what will be the company's return on equity?

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Accounting Basics, Accounting

Category:- Accounting Basics
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