BALANCE SHEET Cash $ 140.0 Accounts payable $ 800 .0 Accts. receivable 880 .0 Notes payable 600.0 Inventories 1,320.0 Accruals 400 .0 Total current assets $2,340.0 Total current liabilities $1,800.0 Long-term bonds 1,000.0 Total debt $2,800.0 Common stock 200 .0 Retained earnings 1,000.0 Net plant & equip. 1,660.0 Total common equity $1,200.0 Total assets $4.000.0 Total liabilities & equity $4.000.0 lNCOME STATEMENT Net sales $6,000.0 Operating costs 5,599.8 Depreciation 100.2
BALANCE SHEET
Cash $ 140.0 Accounts payable $ 800 .0
Accts. receivable 880 .0 Notes payable 600.0
Inventories 1,320.0 Accruals 400 .0
Total current assets $2,340.0 Total current liabilities $1,800.0
Long-term bonds 1,000.0
Total debt $2,800.0
Common stock 200 .0
Net plant & equip. 1,660.0 Total common equity $1,200.0
Total assets $4.000.0 Total liabilities & equity $4.000.0
lNCOME STATEMENT
Net sales $6,000.0
Operating costs 5,599.8
EBIT $ 300.0
Less: Interest 96 .0
EBT $ 204 .0
Less: Taxes 81.6
Net income $ 122.4
OTHER DATA
Annual Principal and Lease Payments 0.00
Shares outstanding (millions) 60 .00
Common dividends (millions) $42.8
Interest rate on NIP and long-term bonds 6.0 %
Federal plus state income tax rate 40%
Year-end stock price $30 .60
What is the firms ROE (
Group of answer choices
9.45%
9.63%
9.84%
10.20%
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