Based on the following information, if managers want to earn a 12% ROA, how much profit must the company generate?
Non-current assets
$ 1,260,000
Current assets
250,000
Profit for the year
170,000
Cost of debt (after tax)
12%
Cost of equity
12%
Based on the following information, if managers want to earn a 12% ROA, how much profit must the company generate?
Non-current assets
$ 1,260,000
Current assets
250,000
Profit for the year
170,000
Cost of debt (after tax)
12%
Cost of equity
12%