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A Firm Has an ROA of 14%,a Debt/equity Ratio of 0.8,a

Question 70

Multiple Choice

A firm has an ROA of 14%,a debt/equity ratio of 0.8,a tax rate of 35%,and the interest rate on the debt is 10%.The firm's ROE is ________.

A) 6.50%
B) 9.10%
C) 10.12%
D) 11.18%
E) none of these

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