Consider a firm with assets of $200 and equity of $200. This firm issues $50 in debt with a 10% annual interest rate to repurchase $25 in equity and to invest $25 into the business. The first year after issuing the debt, the firm has $18 in operating income. Compute the firm's return on equity. a. 7.4% O b. 9.6% O c. 10.3% O d. 11.8%