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Question
Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE?Assets $200,000 Interest rate 8%
D/A 65% Tax rate 40%
EBIT $25,000
a. 12.51%
b. 13.14%
c. 13.80%
d. 14.49%
e. 15.21%
Answer
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