Question: Can you solve this general accounting problem using accurate calculation methods? A firm has assets of $500,000, net income of $40,000, and a debt-to-asset ratio

Can you solve this general accounting problem using accurate calculation methods?

A firm has assets of $500,000, net income of $40,000, and a debt-to-asset ratio of 50%. The management plans to increase the debt ratio to 65% without changing assets or net income. Calculate the firm's new return on equity (ROE) based on the increased debt ratio

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