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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
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) Step by Step Solution
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