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Total assests of the firm is 5,000,000. Outstanding stock is 50,000 shares. EBIT is $500,000. Corporate debt is 50% and the debt interest is 5%.

Total assests of the firm is 5,000,000. Outstanding stock is 50,000 shares. EBIT is $500,000. Corporate debt is 50% and the debt interest is 5%. The corporate tax rate is 40%. calculate EPS and ROE

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