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What is lou lever return on equity invested

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Reference no: EM132611327

What is Lou Lever's return on equity invested on a one-year investment that provides an 11% if he invests $50,000 of his own cash and borrows $120,000 at 8% from a bank in a one-year loan with a single payment if Lou's tax rate is 36%? (Please do the calculations shown in this Lou Lever Example on both a pre-tax and after-tax basis.)

Reference no: EM132611327

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