Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate 35.00% Revenue / Assets 1.80 times Current Ratio 2.40 times EBT / EBIT 0.80 times Assets / Equity 1.90 times Smith Brothers, Inc.'s return on assets (ROA) is closest to:

Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate 35.00% Revenue / Assets 1.80 times Current Ratio 2.40 times EBT / EBIT 0.80 times Assets / Equity 1.90 times Smith Brothers, Inc.'s return on assets (ROA) is closest to:

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 7P

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Question

Use the following information for Smith Brothers, Inc:

EBIT / Revenue	15.00%
Government Tax Rate	35.00%
Revenue / Assets	1.80 times
Current Ratio	2.40 times
EBT / EBIT	0.80 times
Assets / Equity	1.90 times

Smith Brothers, Inc.'s return on assets (ROA) is closest to:

14.04%.

14.82%.

24.71%.

26.68%.

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