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Question 15 [CLO5] The computation of the ROE with the alternative approach does NOT include the following component: O Financial leverage Business assets Cost of

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Question 15 [CLO5] The computation of the ROE with the alternative approach does NOT include the following component: O Financial leverage Business assets Cost of sales Net operating and investment profit after taxes Effective interest rate after tax Question 17 [CLO5] if the sustainable growth rate of a firm is lower than the actual growth rate, it means that the firm is growing too slowly. One possible remedy would be to Increase the dividend retention rate Decrease the prices Decrease leverage Buy new equity Question 16 [CLO5] If you have the following information about the company W: Net operating and investment profit after taxes = 100,000 Business assets = 1,000,000 Effective interest rate after tax = 5 percent Financial leverage = 45% then its ROE will be equal to O 12.25% O 38% 10.50% 15%

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