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MercedesF1 has an ROC of 25%, debt-equity ratio of 1:5,after-tax cost of debt of 7%, cost of equity of 12%, a reinvestmentrate of 40% and

MercedesF1 has an ROC of 25%, debt-equity ratio of 1:5,after-tax cost of debt of 7%, cost of equity of 12%, a reinvestmentrate of 40% and an after-tax operating margin of 12%. The marginalcorporate 2 answers

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