Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Concept explainers

Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived fro…
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Topic Video
Question

: A firm has sales of $41,000, costs of $19,500, addition to retained earnings $5,100,
dividends paid $1,500, interest expense of
$4,500, and a tax rate of 25%. What is the depreciation expense?
1. O$8,571
2. O$8,200
3. O$7,571
4. $8,800 

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Step 2: Calculate EBIDTA and EBIT:
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Step 3: Calculate Depreciation Expense:
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