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Rose Corporation's condensed balance sheet for Year 2 is reproduced below: Net income for Year 2 is $157, 500. Income tax rate is 50%. Amounts

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Rose Corporation's condensed balance sheet for Year 2 is reproduced below: Net income for Year 2 is $157, 500. Income tax rate is 50%. Amounts for total assets and shareholders' equity are the same for Years 1 and 2. All assets and current liabilities are considered to be operating. Determine whether leverage (from long-term debt) benefits Rose's shareholders. Compute Rose's NOPAT and RNOA (use ending NOA). Demonstrate the favorable effect of leverage given the disaggregation of ROCE and your answer to part b

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