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We want to compute the ROE of Chary. It has $20 m of book value of equity, and $80m of debt. Chary expects to sell

We want to compute the ROE of Chary. It has $20 m of book value of equity, and $80m of debt. Chary expects to sell $20m worth of sales and have EAT of $5m and keep 40% of its profit. Furthermore, it has $100m of assets. Its coe is .12 and its beta is 1.2. Calculate Charys ROE. Evaluate ROE as a performance measure.

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