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The Sweet Melon Corp. has in total 100 shares trading on the market at $20 each. The book value of the total equity is $3500.
The Sweet Melon Corp. has in total 100 shares trading on the market at $20 each. The book value of the total equity is $3500. The total market value of debt issuance is $4000. The expected return on total assets is 15% and the expected return on debt is 10%. What is the estimated expected return on equity? 18.3% O 25% O 17.5% O None of the choices is correct
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