Question: What is the expected return on equity for firm in the 30% tax bracket with a 15% expected return on assets that pays 12% on

What is the expected return on equity for firm in the 30% tax bracket with a 15% expected return on assets that pays 12% on its debt, which totals 25% of assets?

a. 15.00%

b. 13.35%

c. 12.00%

d. 8.40%

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