Question: Please show your work step by step in order to receive a thumbs up. You can use Excel for calculations if you wish, but the

Please show your work step by step in order to receive a thumbs up. You can use Excel for calculations if you wish, but the solutions must be copied and pasted in a Word text.

2. A firm has total assets of $1,000,000 and a debt ratio of 30 percent. Currently, it has sales of $2,500,000, total fixed costs of $1,000,000, and EBIT of $50,000. If the firm's interest rate on debt is 11 percent and the firm's tax rate is 40 percent, what is the firm's ROE?

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