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A company has an expected return on assets of 18%, a debt-to-equity ratio of 50%, an interest rate on debt of 5.75%, and a marginal
A company has an expected return on assets of 18%, a debt-to-equity ratio of 50%, an interest rate on debt of 5.75%, and a marginal tax rate of 35%. What is its expected ROE?
A. 24.12%
B. 15.0%
C. 15.68%
D. 12.76%
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