Assume conservative corporation is 100 equity financed

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Assume Conservative Corporation is 100% equity financed. Calculate the return on equity given the following information:

1. Earnings before taxes = $2,000

2. Sales = $5,000

3. Dividend payout ratio = 60%

4. Total asset turnover = 2.0

5. Applicable tax rate = 50%

Reference no: EM13479391

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