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Business, 08.10.2019 02:10 richisolano14

Quigley inc. is considering two financial plans for the coming year. management expects sales to be $600 comma 000, operating costs to be $455 comma 000, assets to be $300 comma 000, and its tax rate to be 30%. under plan a, quigley’s balance sheet would be comprised of 30% debt and 70% equity, and the interest rate on the debt would be 3%. under plan b, quigley's balance sheet would be comprised of 70% debt and 30% equity, and the interest rate on the debt would be 8%. sales, operating costs, assets, and the tax rate are not affected by amount of debt quigley uses. ignore non-debt liabilities such as accounts payable. compute roe under each alternative.

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