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Question 3 5 pts An all equity firm has a return on assets (ROA) of 14.00 percent. The firm makes the decision to replace 30%

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Question 3 5 pts An all equity firm has a return on assets (ROA) of 14.00 percent. The firm makes the decision to replace 30% of its equity with debt that has a before-tax cost of 8 percent (the firm's tax rate is 40 percent). Calculate the firm's new ROE after the debt has been issued and equity has been repurchased (hint: leverage effect and tax shield effect) 17.66% 17.94% 1737% 18.51% 18.23%

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