The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent, and a debt ratio of 60 percent, what is the return on total assets (ROA)?a. 8.0%b. 10.0%с 12.0% 16°10 do The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/Eratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent,and a debt ratio of 60 percent, what is the return on total assets (ROA)?8.0%10.0%a.12.0%b.C.16.7% do20.00% e.6

P/E Ratio =10ROE =20%Debt ratio=60%stock price= $100no. of shares=100ROA=?

The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent, and a debt ratio of 60 percent, what is the return on total assets (ROA)? 8.0% 10.0% a. 12.0% b. C. 16.7% do 100% e.

The Meryl Corporation's common stock currently is selling at $100 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity of 20 percent, and a debt ratio of 60 percent, what is the return on total assets (ROA)? 8.0% 10.0% a. 12.0% b. C. 16.7% do 100% e.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter9: The Cost Of Capital

Section: Chapter Questions

Problem 5P

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