What is the return on equity

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Problem - You are given the following information about a firm: The growth rate equals 8 percent; return on assets (ROA) is 10 percent; the debt ratio is 20 percent; and the stock is selling at $36. What is the return on equity (ROE)?

a. 14.0% b. 12.5% c. 15.0% d. 2.5% e. 13.5%

Reference no: EM132849980

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