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The company XYZ had ROE last year of only 1.6%, but management has developed a new operating plan designed to improve performance. The new plan

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The company XYZ had ROE last year of only 1.6%, but management has developed a new operating plan designed to improve performance. The new plan calls for a debt ratio of 60%, which will result in interest charges of $302 million per year. Management also expects EBIT of $710 million on sales of $9.8 billion next year and it expects to have a total asset turnover of 2.4 as well. Under these conditions, the company's tax rate will be 27%. What will be their ROE? (write this number as a decimal and not as a percentage, e.g. 0.11 not 11%. Round your answer to three decimal places. For example, 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234) Question 20 2 pts If Amazoon's Debt ratio is 0.61, then its Debt-equity ratio must be (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)

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