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The CEO of SHOP wants to evaluate the firm's financing situation. For this purpose, she wants to calculate the implied interest rate the firm is

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The CEO of SHOP wants to evaluate the firm's financing situation. For this purpose, she wants to calculate the implied interest rate the firm is currently paying (based on the most recent fiscal year) from the well-known relationship between interest rate, financial leverage (Total Debt/Equity). ROIC (returns in invested capital) and ROE. Assuming a tax rate of 18%, an ROE for SHOP of 1.0% and an ROIC of 0.97% (all numbers are not corrected for R&D amortization) the implied interest rate the firm pays in percentage is (please enter for example 0.03 as 3)? For reasons of simplification you will not need to take the average of balance sheet items or consider R&D amortization Hint, current portion of lease incentives should be considered as Short Term Debt. The CEO of SHOP wants to evaluate the firm's financing situation. For this purpose, she wants to calculate the implied interest rate the firm is currently paying (based on the most recent fiscal year) from the well-known relationship between interest rate, financial leverage (Total Debt/Equity). ROIC (returns in invested capital) and ROE. Assuming a tax rate of 18%, an ROE for SHOP of 1.0% and an ROIC of 0.97% (all numbers are not corrected for R&D amortization) the implied interest rate the firm pays in percentage is (please enter for example 0.03 as 3)? For reasons of simplification you will not need to take the average of balance sheet items or consider R&D amortization Hint, current portion of lease incentives should be considered as Short Term Debt

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