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A businessman is hoping to get a 20% return on equity after tax. The business generates a 3% sales margin (after tax). Provide two possible
A businessman is hoping to get a 20% return on equity after tax. The business generates a 3% sales margin (after tax). Provide two possible combinations of financial structure, profitability and capital employed that could lead to the generation of a 20% return on equity (the cost of borrowing is 5% before tax, the tax rate is 40% and the company's capital employed is 1,000 )
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