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Today is 1 1 ? 2 4 , and your firm estimated an expected EBIT of $ 2 4 0 , 0 0 0 .
Today is and your firm estimated an expected EBIT of $ for based on total assets of $ a tax rate of percent, a beforetax cost of debt of percent, and a return on equity ROE of percent. Given this information, determine what the firm's expected ROE will be for if it immediately doubles the amount of debt still at a percent rate and uses the proceeds to repurchase equity.
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