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A firm's management is trying to decide about its capital structure. Alternative 1: 40% debt, 60% equity, under which interest rate will be 1296. Alternative
A firm's management is trying to decide about its capital structure. Alternative 1: 40% debt, 60% equity, under which interest rate will be 1296. Alternative 2: 60% debt, 40% equity under which interest rate will be 14%. If total assets are 5,45 million and EBIT is 1,75 million, what is the return on equity (ROE) under each alternative? Use integer numbers in calculations 339, 37% 45%, 52% 36%, 47% 439, 49% 24%, 32% Bo brak
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