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Commonwealth Construction (CC) needs 53 milion of assets to get sartec, and it expacts to haven a basic earning power rato of 15%, EC wit

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Commonwealth Construction (CC) needs 53 milion of assets to get sartec, and it expacts to haven a basic earning power rato of 15%, EC wit ewn re securities, an of its incoime wit debt and comman equity, so no preferred stock will be used. Assuming a 25% tax rate on taxable income, what is the difference between cCs exgected ROE if it finances these assets with. 25% debt versus its erpected Rot if it financet these astats emiresy with common stock? found your answer to twa otoinal olaces. bercentage point

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