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Question 4 4 pts 4. Caruso Co. initially has $ 100 million in assets and is financed 25% with debt and 75% with equity. The

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Question 4 4 pts 4. Caruso Co. initially has $ 100 million in assets and is financed 25% with debt and 75% with equity. The company's total asset turnover is 2, the net profit margin is 10%, and Jackson's retention rate is 60%. Based on the firm's business cycle, what are the amounts of debt and equity on the balance sheet after one year of operation (assuming the firm wishes to maintain its 25/75 debt/equity mix)? O a. debt = $29M; equity = $87M O b. debt - $27.7M; equity = $83M O c. debt - $37M; equity - $87M d. debt - $87M; equity - $29M e, none of the above

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