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Current assets amount to 1.000 and fixed assets account for 25% of revenues. Debt ratio remains at 50%, the interest rate on the entire debt
Current assets amount to 1.000 and fixed assets account for 25% of revenues. Debt ratio remains at 50%, the interest rate on the entire debt is 10%. Return on assets (ROA) is 10%. Sales amounts to 2,000 and EBIT is 5% of sales (40% tax rate). Calculate ROE and ROS.
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