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Company U has no debt outstanding and the market value is 1495428. Earnings before interest and taxes (Eem) are expected to be 465894. Assume no
Company U has no debt outstanding and the market value is 1495428. Earnings before interest and taxes (Eem) are expected to be 465894. Assume no taxes and no bankruptcy costs. Calculate return on equity (ROE). Express your answer as percent Answer: Continue from the previous question. Company U has no debt outstanding and the market value is 1495488. Earnings before interest and taxes (EBIT) are expected to be 465894. Assume no taxes and no bankruptcy costs. Company U is considering a 613792 debt issue with a 4% interest rate (the proceeds are used to buy back the shares) What will be the new equity
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