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Q Corp. has a Basic Earning Power (BEP) ratio of 15%, and has a TIE ratio of 6. Total assets are $100,000, and the debt-equity
Q Corp. has a Basic Earning Power (BEP) ratio of 15%, and has a TIE ratio of 6. Total assets are $100,000, and the debt-equity ratio of 1. The corporate tax rate is 40%.
Compute ROA and ROE?
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