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Do this in excel P 1 3 - 1 1 ROE and recapitalization At the beginning of the year you invest $ 4 0 ,
Do this in excel
P ROE and recapitalization At the beginning of the year you invest $ of your own money plus $ that you borrowed at interest to purchase $ worth of GoFast stock, which earns a return of You pay taxes on the money you make on the stock at the rate of but you can deduct the interest you pay on your loan from your stock income before calculating your tax bill.
a Calculate your net aftertax return on these positions.
b What would your aftertax return have been if you had never borrowed money and had invested just $ in GoFast stock?
Make this and answer it in an excel worksheet
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