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Given a firm has market value of equity 600, its book value for equity is 250 and book value for debt is 600. The firm

Given a firm has market value of equity 600, its book value for equity is 250 and book value for debt is 600. The firm is generating operating income of 40. And the interest on debt is 8% while marginal corporate tax rate if 25%. What is the ROE of the firm.

Im not sure while solving these type of questions. Should I use book values or I can go with book value. Can someone help me out?

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