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[10] A corporation is reinvesting 70% of its net profit in profitable projects. Interest expense equal 1680 lei. Tc=16%. The return on equity is 35.71%
[10] A corporation is reinvesting 70% of its net profit in profitable projects. Interest expense equal 1680 lei. Tc=16%. The return on equity is 35.71% and the debt ratio is 30%. The cost of debt is 10% and earnings before interest and taxes equals 18347 lei. Compute the return on assets. (1 pct) ROA=
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