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Business, 25.01.2020 00:31 danielamejia13

Pacific packaging's roe last year was only 3%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 45%, which will result in annual interest charges of $546,000. the firm has no plans to use preferred stock and total assets equal total invested capital. management projects an ebit of $1,344,000 on sales of $14,000,000, and it expects to have a total assets turnover ratio of 3.2. under these conditions, the tax rate will be 25%. if the changes are made, what will be the company's return on equity?

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