What is the difference in the projected roes

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Question - A company's annual sales are $500,000; its fixed assets are $125,000; its target capital structure calls for 45% debt and 55% equity; its EBIT is $45,000; the interest rate on its debt is 10%% and its tax rate is 40me if the not round intermediate calculations. company had a restricted policy, current assets will be 15% of sales, while under a relaxed policy they will be 25% of sales. What is the difference in the projected ROEs between the restricted and related policies?

Reference no: EM133184133

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