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There are two companies each with a net income of $1.2 million and total asset value of $10million. Company A has a capital structure that
There are two companies each with a net income of $1.2 million and total asset value of $10million. Company A has a capital structure that is 35% debt and the rest equity. Company B uses 60% debt. Which company has a higher ROE, and what is it? A. O Company A, 23.5% B. O Company B, 26.4% C. O Company B, 17.3% D. O Company B, 30.0% E. O Company A, 18.5% Save
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