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A firm has EBIT of $15 million, interest expense of $1 million, and pays taxes of $4 million. The firm has a market-to-book ratio of

  • A firm has EBIT of $15 million, interest expense of $1 million, and pays taxes of $4 million. The firm has a market-to-book ratio of 5.75. If the firm has 30 million shares outstanding at a current price of $12 per share, what is its ROE?A.24%
  • B.16%
  • C.2.8%
  • D.18%
  • E.4.2%

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