Question: An investor is considering starting a new business. The company would require $565,000 of assets, and it would be financed entirely with common stock. The

An investor is considering starting a new business. The company would require $565,000 of assets, and it would be financed entirely with common stock. The investor will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%. How much net income must be expected to warrant starting the business?

Select the correct answer.

a. $76,469b. $76,275c. $76,534d. $76,340e. $76,405

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