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A firm has total assets at the end of year 1 of $100,000, current liabilities of $10,000, long-term debt of $60,000, and equity of $30,000,

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A firm has total assets at the end of year 1 of $100,000, current liabilities of $10,000, long-term debt of $60,000, and equity of $30,000, if the firm pays interest of 4,000 earns 55,000 in net income during the year 2 , and the tax rate is 20%, what is its rate of retum on capital? abotit 10.05 about 9.1% about 5.05 about 5.68 about 16.714

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