Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE

13.56%

Explanation:

For the computation of return in equity first we need to follow some steps which are shown below:-

D/A = Debt ÷ Total assets

Debt = $200,000 × 65%

= $130,000

Interest expense = $130,000 × 8%

= $10,400

Total assets = Total liabilities + Total equity

Total equity = $200,000 - $130,000

= $70,000

Net income = (EBIT - Interest expense) × (1 - Tax rate)

= ($25,000 - $10,400) × (1 - 0.35)

= $9,490

ROE = Net income ÷ Equity

= $9,490 ÷ $70,000

= 13.56%

answer; ///i believe the correct   answer is (e) transformational;

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%