Daggy Corporation's ROE last year was only 5 percent, but its management has developed a new operating plan designed to improve things. The new plan calls for a total debt ratio of 60 percent, which will result in interest expenses of $8,000 per year. Management projects earnings before interest and taxes (EBIT) of $26,000 on sales of $240,000 and it expects to have a total assets turnover of 2.0. Under these conditions, the average tax rate will be 40 percent. If the changes are made, what return on equity will Doggy earn?

Your car dealer is willing to lease you a new car for $499 a month for 5 years. Payments are due on the first day of each month starting with the day you sign the lease contract. If the car price is currently listed at $26,000 what is the annual percentage rate (APR) on your lease?

That's written in the lease.

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