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please answer in excel
V-Formula Example: Example involves the development of a new restaurant property. The land, building, and equipment investmen
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Answer #1
Calculation of Pre-tax ROE
Amount in $
Operating Profit 280000
Less: Interest 101250 Interest payment on the borrowings of $1125000
178750
Less: Depreciation 30000 I assume that Annual capital investment is nothing but depreciation or amortisation
Pre tax Profit 148750
Investment in Equity 375000
Pre-tax ROE in (%) 39.67 Pre tax Profit/Investment in equity 148750/375000
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