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QUESTION 2 Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE? Assets $200,000 Interest rate 8% D/A

QUESTION 2

Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE?

Assets
$200,000
Interest rate
8%

D/A
65%
Tax rate
25%

EBIT
$25,000

a.
16.43%

b.
19.01%

c.
17.25%

d.
18.11%

e.
15.64%

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	a.	16.43%
	b.	19.01%
	c.	17.25%
	d.	18.11%
	e.	15.64%