Answered: You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2008: Net income $520,000 Total debt…

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN: 9781285065137

Author: Eugene F. Brigham, Joel F. Houston

Publisher: Cengage Learning

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Question

You are thinking of investing in Tikki's
Torches, Inc. You have only the following
information on the firm at year-end 2008:
Net income $520,000
Total debt $12.2 million
Debt ratio
42%
What is Tikki's ROE for 2008?
a. 1.79%
b. 10.14%
c. 3.09%
d. 4.26%

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You are thinking of investing in Tikki's Torches, Inc. You have only the following information on the firm at year-end 2008: Net income $520,000 Total debt $12.2 million Debt ratio 42% What is Tikki's ROE for 2008? a. 1.79% b. 10.14% c. 3.09% d. 4.26%

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