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For this question , assume that Smythe Corporation is making operational and financial changes to increases its 2 0 2 3 lackluster ROE. As a

For this question , assume that Smythe Corporation is making operational and financial changes to increases its 2023 lackluster ROE. As a part of that process, they have set a target Debt Ratio (DR)=0.60. They expect Total Assets Turnover (TAT)=2x; Sales = $240,000, which leads to an EBIT = $26,000. The debt ratio leads to interest expense for the year of $8,000, and the tax rate will be 40%. What is the firms ROE in 2024?

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