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A firm has total assets worth $2 million. Its debt to asset ratio is .30. The firm's EBIT is $450,000 and interest expense is $50,000.

A firm has total assets worth $2 million. Its debt to asset ratio is .30. The firm's EBIT is $450,000 and interest expense is $50,000. The firm's tax rate is 40%. What is the firm's return on equity?

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