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The Marfa Mining Company has the following capital structure: Bonds (8.5%) $90 mil Common Stock (2.50 par) $80 mil Retained Earnings $45 mil The firm

The Marfa Mining Company has the following capital structure:

Bonds (8.5%) $90 mil

Common Stock (2.50 par) $80 mil

Retained Earnings $45 mil

The firm has EBIT of $120 million and a tax rate of 30 percent. What is the ROE and EPS?

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