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Your client has debt/assets of 60%, pays interest of 6% on their debt, has pretax income of $5,000,000, net income after taxes of $3,500,000, total
- Your client has debt/assets of 60%, pays interest of 6% on their debt, has pretax income of $5,000,000, net income after taxes of $3,500,000, total assets of $10,000,000 and a cost of equity of 15%. (A) what is this companys tax rate ? (B) What is this companys return on equity? Please label your answers A & B.
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