Net income must be expected to warrant starting the business

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Reference no: EM131819670

Your sister is thinking about starting a new business. The company would require $425,000 of assets, and it would be financed entirely 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. $49,916 b. $66,555 c. $57,375 d. $63,686 e. $55,654

Reference no: EM131819670

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