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Mrs. X is thinking about starting a new business. The company would require $635,000 of assets, and it would be financed entirely with common stock.

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Mrs. X is thinking about starting a new business. The company would require $635,000 of assets, and it would be financed entirely with common stock. She will go forward only if she thinks the business can provide a 7.5% return on the invested capital, which means that the company must have an ROE of 7.5%. How much Net Income must be expected to warrant starting the business? 52.125 44,625 8,466,667 47,625 567,375

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