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ABC Corp's capital structure is 60% equity and 40% debt. Based on the following data, what is the standard deviation of ROE(return on equity)? Assets

ABC Corp's capital structure is 60% equity and 40% debt. Based on the following data, what is the standard deviation of ROE(return on equity)?

Assets $50,000, EBIT $3,000 in recession (20% chance of occurring), $6,000 in normal case (50%) and $9,000 in boom (30%)

Interest rate 8%, Tax 40%

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