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A Firm Has EBIT of $15 Million,interest Expense of $1

Question 2

Multiple Choice

A firm has EBIT of $15 million,interest expense of $1 million,and pays taxes of $4 million.The firm has a market-to-book ratio of 5.75.If the firm has 30 million shares outstanding at a current price of $12 per share,what is its ROE?


A) 24%
B) 2.8%
C) 16%
D) 4.2%
E) 18%

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