Assume a firm earns net income of $10,000 with total assets of $200,000 – half of which is debt – and has 20,000 shares outstanding. Based on this information, its EPS (earnings per share), ROA (return on assets) and ROE (return on equity) are respectively:

 
 
 
 
 
 
Other Questions Of This Category

Considering “Indifference analysis”, which indicates the level of operating income (or earnings before interest and tax, EBIT) where EPS (earnings per share) are equal whether the firm uses debt or…

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