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Following the information from the companies 2019 operations given below Total assets $550,000,000 Total debt ratio= 45% After-tax cost of debt= 7% EBIT= #350,000,000 Common
Following the information from the companies 2019 operations given below
Total assets $550,000,000
Total debt ratio= 45%
After-tax cost of debt= 7%
EBIT= #350,000,000
Common equity holders' requires rate of return=15%
Tax rate=34%
a. What is the ROE of the company
b. What is the EVA of the company
c. Interpret the results
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