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Suppose a company raises $20 in shareholder equity and borrows $60 from the bank to purchase an asset worth $80 that creates $20 in net

Suppose a company raises $20 in shareholder equity and borrows $60 from the bank to purchase an asset worth $80 that creates $20 in net income. What is the ROE?

A. 2

B. 1.25

C. 1

D. 1.5

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