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Wendy's finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 25%. The firms
Wendy's finances using only long-term debt and common equity. The interest rate on its debt is 9% and its tax rate is 25%. The firms basic earning power ratio is 31% and its debt-to-equity ratio of 54%. Wendy's has total assets of $7,450,000 and total current liabilities (consisting only of accounts payable and accruals) of $375,000. What is Wendys ROIC? (Do not round your intermediate calculations) (Hint: Total assets = invested capital + spontaneous liabilities)
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