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margin Southwest physicians, a medical group practice in America, is just being formed. It will need 2 million of total assets to generate $3 million
margin Southwest physicians, a medical group practice in America, is just being formed. It will need 2 million of total assets to generate $3 million in revenue. foremore, the group expects to have a total of 5 percent. The alternative first, it can use all-equity financing group is considering two financing by requiring each physician to contribute her Pro rata share. Second, the practice can finance upto 50 percent of its assets with a bank loan. Assuming that the debt alternative has no impact on the eapected total margin, what is the difference between the expeded return on equity (ROE) if the group finances with 50 Percent debt versus the expected ROE if the group finances entirely with equity capital? (Show work
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