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QUESTION 20 Assume a firm has $2 billion in debt and $2 billion in equity, a beta of 1.8 and a tax rate of 2.

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QUESTION 20 Assume a firm has $2 billion in debt and $2 billion in equity, a beta of 1.8 and a tax rate of 2. Its cost of borrowing is 5%. The riskless return is 2% and the expected equity risk premium is 5%. If the firm's ROIC (return on invested capital) is 6%, what is its EVA? O 1.696 -1.596 0 2.396 0 -1.096

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