A firm has total assets of $800,000 and total liabilities of $300,000.There are no preference shareholders.Earnings before interest and taxes are $100,000.Interest is $21,000 and taxes are $34,000.The return on ordinary shareholders' funds is:
A) 8.0%.
B) 12.5%.
C) 9.0%.
D) 3.8%.

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The Answer of A firm has total assets of $800,000 and total liabilities of $300,000.There are no preference shareholders.Earnings before interest and taxes are $100,000.Interest is $21,000 and taxes are $34,000.The return on ordinary shareholders' funds is:
A) 8.0%.
B) 12.5%.
C) 9.0%.
D) 3.8%.

A Firm Has Total Assets of $800,000 and Total Liabilities