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In the question above, what would the firm's ROE be if it uses the mix of debt and equity financing instead? O 30% O 15%

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In the question above, what would the firm's ROE be if it uses the mix of debt and equity financing instead? O 30% O 15% O 10% O 18% O 12% Your company is pursuing an expansion project and considering two alternative financing options - only equity or a mix of debt and equity. Given the data shown below, how much will the firm's expected return on equity (ROE) be if it uses all equity financing? 30% debt (Levered) $3,000,000 0% Debt (Unlevered) Required investment (capital) $3,000,000 Operating Income (EBIT) $600,000 %Debt 0% Capital from debt $0 Capital from equity $3,000,000 $600,000 30% $1,000,000 $2,000,000 Interest rate NA 10% Tax rate 40% 40% 12% 20% O 10% O 8% O 6%

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