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214. BquS Inc. plans to issue 7%, $400,000, 10-year bonds in order to finance an expansion. The expansion is expected to increase income before interest

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214. BquS Inc. plans to issue 7%, $400,000, 10-year bonds in order to finance an expansion. The expansion is expected to increase income before interest expense from $100,000 to $175,000. BquS has $1,000,000 in average common equity. Calculate the expected return on common shareholders' equity. (ignore income taxes) A. 7.0%. g 14.7%. c. 20.0%. D. 43.8%. E. 57.1%

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