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an all equity firm has a return on assets of 14.40%. the firm makes th decision to replace 30% of it's equity with debt thats

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an all equity firm has a return on assets of 14.40%. the firm makes th decision to replace 30% of it's equity with debt thats has a before tax cost of 8%( the firms tax rate is 40%). calculate the firm's new ROE after the debt has ben issued and equity has Been repurchased
An all equity from has a return on assets (ROA) of 14.40 percent. The firm makes the decision to replar 30% of its equity with debt that has a before-tax cost of 8 percent (the firm's tax rate is 40 percentCatulate the firm's new ROE after the debt has been issued and equity has been purchased thint leverage effect and tax shield effect)

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