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Business, 30.11.2019 03:31 burnsmykala23

How would skaters world, inc.'s return on equity (roe) be different if the company were to issue $200,000 of 10% bonds instead of $200,000 in stock? assume income before interest and taxes is estimated to be $100,000, income taxes are 35% and stockholders' equity is initially $300,000.
a. roe would be the same.
b. roe would be higher with bonds.
c. roe would be lower with bonds.

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