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You purchase a small business that is valued at $199307. You decide to borrow $36968 at 8% interest and pay for the rest with equity.

You purchase a small business that is valued at $199307. You decide to borrow $36968 at 8% interest and pay for the rest with equity. The debt is due in one year, and you expect the firm to have cash flows of $70956 in one year. What is your return on equity?

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