debt equity ratio example

Help ROE (return on equity)?

If the company is RE 3% last year. Manager to develop a plan that calls for debt ratio total of 40%, resulting in interest expense of $ 200,000. Project Management EBIT of $ 1,000,000 on sales of $ 10 million and expects to have a turnover rate total assets of 2.0. If the tax rate is 42% what is RE? I just need someone to tell me how to do it step by step. I learn by watching examples and I have no examples follow. If you want to solve this problem for me in the lead is very good because the problem I listed here, I've changed all # 's, so I'm not kidding. I have no example to follow so you can To know what to do myself. I'm working on it for hours.

You can listen .. This is how I think it will to be, according to data even in the first givin what you need to know wat is required is already deer Rerutn = / equity so we need to calculate the return and refund of new of new equity capital (net) = EBIT – Interest expense – Taxes 1-200000 – (42% x 1,000,000) = 380 000 we now have the money statement new = you know that the road is completely balacne (Total Assets = owner of capital habeas) + as indicated in the question, Total Return Asset Total Assets = 2 = result net sales / total assets since 2 = 10 million / x, then multiply by a single cross x = 5 million Now that we have obtained the value of total assets = 5 million Then there's the other side of the balance equation is habeas + = 5 million shareholders Therefore, if we knew that the debt ratio (habeas / Total Assets) = 40% x 40% = 5 million 2,000,000, while only 60% remaining equity = 3,000,000, now that we have the two points needed to complete the performance equation = RE / Heritage = 380 000 / 3,000,000 = 12.7% thats how I have it .. so I hope that came out of this Benfer and good luck: D