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ACME company has net income of $25,000, interest expense of $8,000, and its tax rate is 25%. Its note payable equals $25,000, long-term debt equals

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ACME company has net income of $25,000, interest expense of $8,000, and its tax rate is 25%. Its note payable equals $25,000, long-term debt equals $10,000, and common equity equals $70,000. The firm finances only with debt and common equity, so it has no preferred stock. What is the firm's ROE? 45.24% 39.45% 38.5% 35.7% 41.34%

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