Question: i asked this question 2 days ago, but it was inccorect. please show me the steps for this. XYZ is a levered firm with debt-to-equity
i asked this question 2 days ago, but it was inccorect. please show me the steps for this.
XYZ is a levered firm with debt-to-equity ratio D/E= 0.4 , and return on asset rxyza=11%. Its debt is risk-free. Suppose the risk-free rate is 2.5%.
(a) What is its return on equity raxyz?
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