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Question
For a given company, the return on invested capital (ROIC) is 13.5 percent, the tax rate is 34 percent, and the pretax cost of debt is 8.8 percent. If its debt-to-equity ratio is equal to 2.0, what is the return on equity (ROE)?
a) 16.30 percent.
b) 17.80 percent.
c) 28.88 percent.
d) 25.30 percent.
Answer
This answer is hidden. It contains 92 characters.
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