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Question
A firm has a profit margin of 15 percent on sales of $20,000,000. If the firm has debt of $7,500,000, total assets of $22,500,000, and an after-tax interest cost on total debt of 5 percent, what is the firm's ROA?
a. 8.4%
b. 10.9%
c. 12.0%
d. 13.3%
e. 15.1%
Answer
This answer is hidden. It contains 83 characters.
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