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Debt-to-total-assets ratio

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Reference no: EM132235112

The King Card Company has a ROA (investment) ratio of 20 percent.

a. If the debt-to-total-assets ratio is 25 percent, what is the ROE? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

ROE %

b. If the firm had no debt, what would the ROE be?

ROE %

Reference no: EM132235112

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