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A Firm Has an ROE of - 2%,a Debt/equity Ratio

Question 88

Multiple Choice

A firm has an ROE of - 2%,a debt/equity ratio of 1.0,a tax rate of 0%,and an interest rate on debt of 10%.The firm's ROA is _______.

A) 4%
B) 6%
C) 8%
D) 10%
E) none of these

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