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3. ROE and Leverage Suppose the company in Problem 1 has a market-to-book ratio of 1.0 a. Calculate return on equity, ROE, under each of

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3. ROE and Leverage Suppose the company in Problem 1 has a market-to-book ratio of 1.0 a. Calculate return on equity, ROE, under each of the three economic scenarios betion any debt is issued. Also calculate the percentage changes in ROE for economs expansion and recession, assuming no taxes. 3. ROE and Leverage Suppose the company in Problem 1 has a market-to-book ratio of 1.0 a. Calculate return on equity, ROE, under each of the three economic scenarios betion any debt is issued. Also calculate the percentage changes in ROE for economs expansion and recession, assuming no taxes

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