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borishaifa [10]
2 years ago
3

Your sister is thinking about starting a new business. The company would require $300,000 of assets, and it would be financed en

tirely with common stock. She will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%. How much net income must be expected to warrant starting the business?
a. $38,475
b. $44,145
c. $33,210
d. $40,500
e. $41,310
Business
1 answer:
dimaraw [331]2 years ago
8 0

Answer:

$40,500 is net income that must be required

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